Question: Question V Butterfly Spread Using Calls (10 points) Call options on a stock are available with strike prices of $15, $17.5, and $20 and expiration

Question V Butterfly Spread Using Calls (10 points) Call options on

Question V Butterfly Spread Using Calls (10 points) Call options on a stock are available with strike prices of $15, $17.5, and $20 and expiration dates in 3 months. Their prices are $4, $2, and $0.5, respectively. (a) How can those options be used to create a butterfly spread? (b) What is the initial investment? (c) Construct a table showing how payoff and profit varies with Sy in 3 month, for the butterfly spread you created. The table should looks like this: Payoff Profit Stock Price ST 20

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