You Sell One Huge-Packing August 50 Call Contract and Sell

You sell one Huge-Packing August 50 call contract and sell one Huge-Packing 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 stock 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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