3. An investor buys 500 shares of ABC stock at $17 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 $17? (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 $16 and the investor sells his shares