Butterfly Spread Payoffs Flashcards
0
Q
Butterfly Max Profit
A
= XM - XL - CL + 2(CM) - CH
1
Q
Butterfly spread profit
A
= (S-XL) - 2(S-XM) + (S - XH) - CL + 2(CM) - CH
2
Q
Butterfly spread max loss
A
= CL - 2(CM) + CH
3
Q
Butterfly spread break even
A
= XL + CL -2(CM) + CH
= 2(XM) - XL - CL + 2(CM) - CH
