You Sell One Hewlett Packard August 50 Call Contract and Sell

You sell one Hewlett Packard August 50 call contract and sell one Hewlett Packard August 50 put contract. The call premium is $1.25 and the put premium is $4.50. Your strategy will pay off only if the share price is ________ in August.

A) either lower than $44.25 or higher than $55.75
B) between $44.25 and $55.75
C) higher than $55.75
D) lower than $44.25

Correct Answer:

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