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A quote sheet with a hole in it · Part 1 of 3
A market maker quotes European calls on a stock at $100, all with the same expiry: the 90-strike at $14.00, the 100-strike at $8.00 and the 110-strike at $1.50. Interest rates are zero and you can trade at these prices.
What does the 90–100–110 call butterfly (long one 90, short two 100s, long one 110) cost at these quotes?
Answer with a number. Fractions, powers and expressions like 23/6 or C(52,5) are read correctly in practice.
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