Question: Consider call options on the same stock with the same maturity date. You bought two call options with strike prices of $53 and $85 for

Consider call options on the same stock with the same maturity date. You bought two call options with strike prices of $53 and $85 for $5.38 and $1.62, respectively, and sold two call options with a strike price of $69 for $2.81 each. This strategy is called a buttefly spread.

Part 1

What is your payoff if the stock price is $77 on the expiration date?

Part 2

What is your profit if the stock price is $77 on the expiration date?

Part 3

What is your payoff if the stock price is $61 on the expiration date?

Part 4

What is your profit if the stock price is $61 on the expiration date?

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