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Consider the two strategies described in A and B below. Which one of the two strategies will cost the most? What is the investor using

Consider the two strategies described in A and B below. Which one of the two strategies will cost the most? What is the investor using the cheaper strategy giving up? Explain using a graph comparing the payoffs of the two strategies.

A: Long a call option with exercise price X.

B: A portfolio long a call option with exercise price X and short a call option with exercise price (X + 15)

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