16. Given the following curve of the payoff of a call option, what is the profit of writing one such call option when the underlying security price is $90 at maturity? $30, Payoff = Value at expiration of 60 70 80 Cost of option 90 100 Profit -$10 $147 A. -$4 B. $0 D. $10 17. Consider the following three investment strategies: 1). Invest entirely in stock, 100 shares for $90 each 2). Invest entirely in at-the-money options; buy 900 calls, each selling at $10.(9 contracts, each for 100 shares) 3). Buy 100 call options for $1,000; invest remaining $8,000 in 6-month T-bills at 2% interest Which of the following statements is most likely to be true? A. Strategy 1) is better than strategy 2) when the stock price is $100 at maturity. B. The profit of strategy 2) is $4500 ($5x900 =$4500) when the stock price is $95 at maturity. C. A risk-averse investor prefers strategy 2) than strategy 3). D. None of the above