Chapter 06 · Section 6.1

Breakeven Point

Market Outlook  : STABLE
Profit Potential: limited
Loss Potential  : limited 
Breakeven Points:

The breakeven points occur when the market price at expiration equals ...

f) a and c
No. When the market price at expiration is at the "low exercise price minus the net premiums" or the "high exercise price plus the net premiums", the holder is out on the wings of the butterfly and taking the maximum loss.