Multiple Choice
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 __________ in August.
A) only if the stock price is either lower than $44.25 or higher than $55.75
B) only if the stock price is between $44.25 and $55.75
C) only if the stock price is higher than $55.75
D) only if the stock price is lower than $44.25
Correct Answer:
Verified
Correct Answer:
Verified
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