Question: Question 7(2 points) You sell one Huge-Packing August 50 call contract and sell one Huge-Packing August 50 put contract. The call premium is $1.25 and

Question 7(2 points)

You sell one Huge-Packing August 50 call contract and sell one Huge-Packing 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.

Question 7 options:

either lower than $44.25 or higher than $55.75

lower than $44.25 or higher than $55.75

between $44.25 and $55.75

lower than $42.25 or higher than $57.75

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