profit on collar

Current share price is 91, buy 88 call for $4.4 and sell 94 call for $1. What is maximum profit?


Is this a collar? Looks like a bull spread

A collar has the same payoff diagram as a bull spread. Only with the collar, you own the underlying.

and you own put instead of a call at lower strike

sorry…i meant bull spread

Good point

payoff diagram might be same but absolute value might not be same.

collar you also hold underlying while in butterfly spread you don’t.

What is it, a collar or a butterfly spread?

^ neither - sounds like a bull spread

a collar (or a bull spread) looks nothing like a butterfly spread… where are you getting a butterfly spread from in this conversation?

And to answer the actual question, JJ is correct.