create the following strategies and show your potential net payoff: Bull Spread for Amazon (AMZN) maturing on May 13, with minimum gross payoff of zero, centered around $ 2,900 stock price and capped at $ 40 (gross) Butterfly spread for Tesla (TSLA) maturing on May 13, centered around $870 stock price and capped at $ 10 (gross) Straddle for IBM (IBM) maturing on May 13 centered around $ 135 stock price.

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter13: Direct Foreign Investment
Section: Chapter Questions
Problem 2IEE
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I need your help! create the following strategies and show your potential net payoff:

  • Bull Spread for Amazon (AMZN) maturing on May 13, with minimum gross payoff of zero, centered around $ 2,900 stock price and capped at $ 40 (gross)
  • Butterfly spread for Tesla (TSLA) maturing on May 13, centered around $870 stock price and capped at $ 10 (gross)
  • Straddle for IBM (IBM) maturing on May 13 centered around $ 135 stock price.
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