Question: Using the options below, at what price range would the investor lead to a positive profit when BUTTERFLY SPREAD is created? call option with K
Using the options below, at what price range would the investor lead to a positive profit when BUTTERFLY SPREAD is created?
- call option with K = $60, where its option price = $1.00
- call option with K = $65, where its option price = $3.50
- call option with K = $70, where its option price = $9.00
| A. | when stock price is below $60 or above $70 | |
| B. | when stock price is between $60 and $70 | |
| C. | when stock price is below $63 or above $67 | |
| D. | when stock price is between $63 and $67 |
| E. | when stock price is below $55 and/or above $65 |
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