Question: Consider call options on the same stock with the same maturity date. You bought two call options with strike prices of $51 and $87 for

Consider call options on the same stock with the same maturity date. You bought two call options with strike prices of $51 and $87 for $6.19 and $1.46, respectively, and sold two call options with a strike price of $69 for $2.98 each. This strategy is called a buttefly spread.

Part 1 What is your payoff if the stock price is $78 on the expiration date?

Part 2 What is your profit if the stock price is $78 on the expiration date?

Part 3 What is your payoff if the stock price is $60 on the expiration date?

Part 4 What is your profit if the stock price is $60 on the expiration date?

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