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a) Draw the net profit diagrams for each of the three call positions and the entire butterfly trade using the following attributes Call 1: Strike

a) Draw the net profit diagrams for each of the three call positions and the entire butterfly trade using the following attributes Call 1: Strike = $50, Premium = $1 Call 2: Strike = $52, Premium = $1.75 Call 3: Strike = $54, Premium = $3 What does it cost to put on this trade? b) Suppose you reverse the positions and write Call 1 and Call 3, and buy two Call 2s. Draw the same net profit diagram. Why would you take on such a position? What does it cost to put on this trade?

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