3. An investor buys 500 shares of ABC stock at S17 a share. He sells 5 call contracts (100 shares each) with a striking price of $17.50 and premium of $2 a share. Assume interest r = 0% annual effective. (a) Draw a time diagram. What is the investor's initial investment? (b) What will be the investor's profit at expiration if the spot price of the stock is S17? (c) What will be the investor's profit at expiration if the spot price of the stock is $18 if the calls are exercised? (d) What will be the investor's profit at expiration if the spot price of the stock is 816 and the investor sells his