Question: You take a speculative position in two options. You sell a call option and you sell a put option on firm ABC. The call option

You take a speculative position in two options. You sell a call option and you sell a put option on firm ABC. The call option has a strike price of $50 and you receive a premium of $4. The put option also has a strike price of $50 and you receive a premium of $4. Both options expire at the same time in three months from now.

What is your maximum possible profit?

A) Unlimited

B) $50

C) $42

D) $58

E) $8

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