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1 . Call options on a stock are available with strike prices of $ 1 5 , $ 1 7 . 5 and 2 0

1. Call options on a stock are available with strike prices of $15, $17.5 and 20$ before expiration date. The call premiums for each are $4,2$, and $0.5, respectively. Explain how the options can be used to create a butterfly spread.

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