2 exam

2. You sell one Hewlett Packard call option with $50 strike price and August maturity. You also sell one Hewlett Packard put option with $50 strike price and the same maturity. The call option price is $1.25 and the put option price is $4.50. Your profit will be positive in August. I 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 E. none of the above