Question: A trader sells a strangle (i.e. a reverse strangle) by selling a call option with a strike price of $50 for $3 and selling a

A trader sells a strangle (i.e. a reverse strangle) by selling a call option with a strike price of $50 for $3 and selling a put option with a strike price of $40 for $4.

What is the initial investment?

For what range of prices of the underlying asset does the trader make a profit?

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