With the stock 45 last, what is a rational reason you would buy the 45-strike call for $4.50 and sell the 50-strike call for $1.50? This called buying the 45-50 call spread for $3.

Multiple Choice

• You thought that the stock had an equal chance to be $35 or $55 at expiration.

• You thought that the stock had an equal chance to be $47 or $50 at expiration.

• You thought that the stock had an equal chance to be $20 or $70 at expiration.

• You thought that the stock had an equal chance to be $41 or $49 at expiration.

• You thought that the stock had an equal chance to be $40 or $50 at expiration.