Domestic Payoff: Butterfly Spread Formula: Hd = max (Sd - Xd1, 0) + + max (Sd - Xd2, 0) - -2 * max (Sd - (Xd1 + Xd2) / 2, 0) Xd1 = 1.1; Xd2 = 0.6

Foreign Payoff: Butterfly Spread

In this case, both payoffs look very similar again. The financially equivalent foreign Butterfly Spread, however, has slightly differently sloping sides than its domestic counterpart.