you own a stock with a current price of $150 per share.

The following options are available on this stock:

A six-month call option with an exercise price of $130 is selling for $23

A six-month call option with an exercise price of $150 is selling for $12

A six-month call option with an exercise price of $170 is selling for $4

A six-month call option with an exercise price of $130 is selling for $3

A six-month call option with an exercise price of $135 is selling for $4

A six-month call option with an exercise price of $170 is selling for $22

a. i. How would you construct a butterfly spread to profit from a large movement in stock price?

ii. What is the maximum gain possible in 6 months?

iii. What is the maximum loss possible in 6 months?

iv. What is the breakeven stock price in 6 months?

b. i. How would you construct a straddle to profit from a large movement in stock price?

ii. What is the maximum gain possible in 6 months?

iii. What is the maximum loss possible in 6 months?

iv. What is the breakeven stock price (or prices)?