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A stock price is currently $23. A reverse (i.e. short) butterfly spread is created from put options with strike prices of $20, $25, and $30.

A stock price is currently $23. A reverse (i.e. short) butterfly spread is created from put options with strike prices of $20, $25, and $30. The costs of the puts are $1 for $20 put, $3 for $25 put, and $5.5 for $30 put. Use graphs to illustrate the profit pattern of this spread. What are the maximum gains and maximum losses from the spread?

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