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The option position that has the following payoff diagram upon expiration is: A) A long call with a strike price of $40, bought at a

The option position that has the following payoff diagram upon expiration is:

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A) A long call with a strike price of $40, bought at a $3 premium

B) A long put with a strike price of $40, bought at a $3 premium

C) A short call with a strike price of $40, sold at a $3 premium

D) A short put with a strike price of $40, sold at a $3 premium

E) None of the above

Please show calculation/explanation

6 Profit ($) 4 N 0 Stock Price ($) 30 35 40 45 50 -2 -4

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