Question: Please solve in excel with graphical representation. Call options on a stock are available with strike prices of $15, $17.5, and $20 and expiration dates
Please solve in excel with graphical representation.
Call options on a stock are available with strike prices of $15, $17.5, and $20 and expiration dates in three months. Their prices are $4, $2, and $0.5, respectively. Explain how you can use the options to construct a butterfly spread. Show the profit function in each interval between the strike prices and show the final graphical representation.
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