Question: 17. Please explain why the Strategy (A) costs more than the Strategy (B): 3% Strategy (A): A straddle using options with a strike price

17. Please explain why the Strategy (A) costs more than the Strategy

17. Please explain why the Strategy (A) costs more than the Strategy (B): 3% Strategy (A): A straddle using options with a strike price of $22 and a 6- month maturity Strategy (B): A strangle using options with strike prices of $18 and $26 and a 6-month maturity.

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