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Construct a table showing the profit from the strategy

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Three call options on a stock have the same expiration date and strike prices of $55, $60, and $65. The market prices are $8, $5, and $3, 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? Plot a graph of the final profits (after excluding cost) from the strategy (Y axis) for a closing stock price range of $0 to $100 in increments of $5, on the X-axis.

Reference no: EM133114697

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