Question: Explain how you would construct a butterfly spread using call options with 3 different strikes of 15, 17.5 and 20. These call options are priced

Explain how you would construct a butterfly spread using call options with 3 different strikes of 15, 17.5 and 20. These call options are priced at 4,2 and 0.5 respectively. Draw the payoff diagram of this spread showing the cost of the spread, the break even points and the maximum payoff.

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