16. You reconsider the ESPR trade. Now you decide to buy the 55 call and sell the 60 call. This is called a 17. You are looking again at the ESPR trade. The chances of the stock being above breakeven are 24.16%, and of being above $60 per share is 14.19%. What is your expected maximum return against risk? 18. You are considering a butterfly spread for ZEUS (Olympic Steel) currently trading for $17.67 per share ask. You study the quotes below. What long or short, call or put butterfly spread would provide the highest MAXIMUM payoff, regardless of probability Call-Bid Call-Ask Strike Put-Bid Put-Ask .75 1.00 17.50 .65 .90 .25 20.00 2.30 2.60 .05 .15 22.50 4.60 5.10 19. Regarding the butterfly in Problem 18 above, what would that payoff be? (Round dollar answer to the nearest dollar). 20. The objective in credit spreads is to let theta work for the investor; the intent is get all options to expire worthless. T/F 21. You believe that SPY will be range-bound over the coming week. What strategy works best under these circumstances? a. Calendar spread b. Straddle c. Vertical credit spread d. Strangle e. Butterfly .10