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A butterfly spread involves positions in options with three different strike prices. It can be created by buying a call option with a low strike of X1; buying a call option with a high strike X3; and selling two call options with a strike X2 halfway between X1 and X3. What can be said about the upside and downside of the strategy?
A
Both the upside and downside is unlimited.
B
Both the upside and downside is limited.
C
The upside is unlimited but the downside is limited.
D
The upside is limited but the downside is unlimited.