1. The following prices are available for call and put options on a stock priced at $50. The risk-free rate is 6 percent and the volatility is 0.35. The March options have 90 days remaining and the June options have 180 days remaining. The Black-Scholes model was used to obtain the prices.

	Calls		Puts
Strike	March	June	March	June
45	6.84	8.41	1.18	2.09
50	3.82	5.58	3.08	4.13
55	1.89	3.54	6.08	6.93

Suppose an investor expects the stock price to remain at about $50 and decides to execute a butterfly spread using the June calls. Answer the following questions and remember that options are traded in blocks of 100 options.

1. What will be the cost of the Butterfly Spread?

2. What will be the profit at expiration of the June options if the stock price is $52.50?