An investor sells a European call on a share for $4. The stock price is $47 and the strike price is $50. Under what circumstances does the investor make a profit? Under what circumstances will the option be exercised? Draw a diagram showing the variation of the investor's profit with the stock price at the maturity of the option. K.3. An investor sells a Europeas call option with strike price of K and maturity and buys a put with the same strike price and maturity. Describe the investor's position