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Call options on a stock are available with strike prices of $15,$17.50, and $20 and expiration dates in three months. Their prices $4,$2, and $0.50,
Call options on a stock are available with strike prices of $15,$17.50, and $20 and expiration dates in three months. Their prices $4,$2, and $0.50, respectively. Explain how the options can be used to create a butterfly spread. Construct a table and graph showing how profit varies with stock price for the butterfly spread. Graph the profit potential at maturity from the trade including each component
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