12. Microsoft stock is priced at PMs = $40. A trader, believing that the share price will fluctuate in a tight range around $40, simultaneously buys both a July 43 call for $2 and a July 37 call for $6, and sells two July 40 calls for $3 each. [This strategy is called a long butterfly spread.] Which of the following statements is correct about this total option position at expiration? a) Maximum profit = +$2; maximum loss =-$1. b) Profit is maximized when PMs = $40; loss is maximized when PMs