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You buy one Merrill August 50 call contract and one Merrill August 50 put contract. The call premium is $4.25 and the put premium is

You buy one Merrill August 50 call contract and one Merrill August 50 put contract. The call premium is $4.25 and the put premium is $4.50. Your strategy is useful if you believe that the stock price __________.

Question 4 options:

will be lower than $41.25 in August

will be between $41.25 and $58.75 in August

will be higher than $58.75 in August

either A or C

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