The strategy described in the question is a bear spread. This is identified by the investor selling a call option with a lower strike price (USD 50) and buying a call option with a higher strike price (USD 60) on the same security with the same maturity. The maximum profit for this strategy is USD 8, which is achieved when the stock price at expiration (St) is less than or equal to the lower strike price (USD 50). In this scenario, neither of the options would be exercised, and the investor would keep the initial cash inflow of USD 8.

The maximum loss occurs when the stock price at expiration is greater than or equal to the higher strike price (USD 60). In this case, both options would be exercised. The investor would be obligated to sell the stock at the lower strike price (USD 50) due to the sold call option and would have to buy the stock back at the higher strike price (USD 60) through the purchased call option, resulting in a loss of USD 10. However, since the investor received an initial inflow of USD 8, the net loss would be USD 2 (USD 10 loss - USD 8 inflow).

The explanation provided in the file content confirms that option A is correct, with a maximum profit of USD 8 and a maximum loss of USD 2.