1. A long call butterfly spread is a strategy in which an investor combines a bull and a bear spread strategy. All options for this strategy have the same expiration date and are for the same underlying asset. Since this strategy consists of two spreads, it requires 4 separate options. The following example will help you build and analyze such a butterfly spread. Consider a stock that is currently trading for $60. An investor is making the following four option contract transactions (each for 100 shares) to build a long call butterfly spread:
   • Buy a call | Strike: $50 | Premium: $11.20

• (2x) Sell a Call | Strike: $60 | Premium: $2.44
• Buy a call | Strike: $75 | Premium: $0.15

1. At what spot price is the profit from this strategy maximized?
2. What is the total net outlay of building this strategy?
3. Draw the profit diagram of this strategy.
4. This strategy would be considered an even-winged butterfly if both wings (that are the profit floors) would be even. You should find that this butterfly has uneven wings. What would the investor have to change about the way he purchased the option to make the butterfly even-winged?