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 itsoption price =$9.00
Which one of these options is the correct answer?
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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