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Eplain how the options can be used to create a butterfly

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Reference no: EM13574116

Call options on a stock are available with strike prices of $15, $17½, and $20, and expiration dates in 3 months. Their prices are $4, $2, and $½, respectively. Explain how the options can be used to create a butterfly spread.

Construct a table showing how profit varies with stock price for the butterfly spread.

Reference no: EM13574116

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