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Betty Lu, an option analyst at UMB Student Managed Fund analyzing a call option on ABC, Inc stock. The current stock priced of ABC at

Betty Lu, an option analyst at UMB Student Managed Fund analyzing a call option on ABC, Inc stock. The current stock priced of ABC at $40. A call option with an exercise price of $40 and selling at $7. Lu buys the stock and sells the call. At expiration the stock price is:

$52

$38

Determine the payoff of the strategies indicated and what is the name of the strategy?

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