Question: Consider call options on the same stock with the same maturity date. You bought two call options with strike prices of $54 and $85 for

Consider call options on the same stock with the same maturity date. You bought two call options with strike prices of $54 and $85 for $5.1 and $1.4, respectively, and sold two call options with a strike price of $69.5 for $3 each. This strategy is called a buttefly spread.

What is your payoff if the stock price is $77.25 on the expiration date?

What is your profit if the stock price is $77.25 on the expiration date?

What is your payoff if the stock price is $61.75 on the expiration date?

What is your profit if the stock price is $61.75 on the expiration date?

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