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Show work for: Mary is creating a butterfly spread using the following 3 call options. Strike...

Show work for: Mary is creating a butterfly spread using the following 3 call options. Strike Price Call Option Price A $90 $21.33 B $100 $11.18 C $110 $5.90 Calculate her initial cash flow of butterfly spread. If it's a cash inflow, enter a positive number. If it's a cash outflow, enter a negative number.

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Answer #1

Buy 1 ITM call
Sell 2 ATM calls
Buy 1 OTM call

TOtal cash outflow=21.33-2*11.18+5.90=$4.87

Cash outflow of -$4.87

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