Call options on a stock are available with strike prices of ($ 15, $ 17 frac{1}{2}), and

Question:

Call options on a stock are available with strike prices of $\$ 15, \$ 17 \frac{1}{2}$, and $\$ 20$, and expiration dates in 3 months. Their prices are $\$ 4, \$ 2$, and $\$ \frac{1}{2}$, 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.

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