Microsoft PowerPoint - PoF.ppt

(lu) #1
Butterfly spreadƒ 186

with calls: long 1 call, E=E1;

short 2 calls, E=E2 and long 1

call, E=E3, where E3>E2=0.5(E1+E3)>E1
ƒ

Profit/loss diagram
Derivative securities: Options - Some profit/loss diagrams

Free download pdf