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You sell one August 50 call contract and sell one August 50 put contract. The call premium is $1.25 and the put premium is $4.50.
You sell one August 50 call contract and sell one 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. | higher than $55.75 | |
B. | lower than $44.25 | |
C. | either lower than $44.25 or higher than $55.75 | |
D. | between $44.25 and $55.75
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