1. 指導教授：張上財 班級：碩研財金一甲 學生：郭宜欣 學號： MA180102 Long Butterfly

2. Description Expected prices in a range of finishing, that is prices on the ceiling, under the iron plate, suitable for such transactions. A Long Butterfly is a Short Straddle with a conservative twist! By purchasing two out-of-the- money options (one Put and one Call) the investor's maximum risk exposure becomes definable.

3. Description The profits and risks of such transactions are limited, when mid - priced index in buying Call (Put) near finishing, you can get the time value of the interests, and the longer the time, sold two units of time value will decrement, the more conducive to the forward butterfly spread transactions. Therefore, for positions close to the balance sheet date, the option trade fair start next month in this way have reasonable profit space.

4. Long Call Butterfly Long butterfly spreads are entered when the investor thinks that the underlying stock will not rise or fall much by expiration. Using calls, the long butterfly can be constructed by buying one lower striking in-the-money call, writing two at-the-money calls and buying another higher striking out-of-the- money call. A resulting net debit is taken to enter the trade.

5. Limited Profit Max Profit = Strike Price of Short Call - Strike Price of Lower Strike Long Call - Net Premium Paid - Commissions Paid Max Profit Achieved When Price of Underlying = Strike Price of Short Calls

6. Limited Risk Max Loss = Net Premium Paid + Commissions Paid Max Loss Occurs When Price of Underlying ≦ Strike Price of Lower Strike Long Call OR Price of Underlying ≧ Strike Price of Higher Strike Long Call

7. Breakeven Point(s) There are 2 break-even points for the butterfly spread position. The breakeven points can be calculated using the following formulae. Upper Breakeven Point = Strike Price of Higher Strike Long Call - Net Premium Paid Lower Breakeven Point = Strike Price of Lower Strike Long Call + Net Premium Paid

8. For example CallStrike PricePremium Sell 2740064 Buy 17200132 Buy 1760029

10. Result Max Loss = (132+29)-(64*2)=33 Max Profit =(7400-7200)-33=167 Lower Breakeven Point =7200+33=7233 Upper Breakeven Point =7600-33=7567

11. Thank you for your attention !