Discussion: Construct An Iron Butterfly Strategy
Construct an Iron Butterfly strategy using a table and draw the profit-loss diagram. An Iron Butterfly requires that one buy an OTM put with X1 , sell another ATM put with X2 , sell an ATM call with X2 , and buy an OTM call with X3 . X1 , X2 , and X3 are evenly spaced. Explain what are the similarities and differences between a Butterfly and an Iron Butterfly.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.