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Three call options on a stock have the same expiration date and strike prices of $ 5 5 , $ 6 0 , and $
Three call options on a stock have the same expiration date and strike prices of $$ and $ The market prices are $$ and $ respectively. Explain how a butterfly spread can be created. Construct a table showing the profit from the strategy. For what range of stock prices would the butterfly spread lead to a loss?
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