The common stock of the Avalon Corporation has been trading in a wide range around $40 per share for months, and you believe it is going to stay either in that range or deviate further for the next 3 months. The price of a 3-month put option with an exercise price of $40 is $3, and a call with the same expiration date and exercise price sells for $4. What would be the total premium income if you decide to sell a straddle?

$300

$400

$500

$700