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To create a reverse butterfly option strategy, you short a call with X=200, buy two calls with X=230, and write a call with X=260. The

To create a reverse butterfly option strategy, you short a call with X=200, buy two calls with X=230, and write a call with X=260. The call prices for the different strikes are below:

X=200 --> c= $44.5

X=230 --> c= $18.32

X=260 --> c=$2.30

You will break even if the stock price at expiration is at or at . Your maximum possible gain is and your maximum possible loss is .

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