5- Greg fancies himself a shrewd investor. He has observed that the price of a given stock has remained more or less unchanged for the last three weeks at around the $20 mark. Although he does not own any stock himself, he believes he can profit off this situation and sells Nicole the right to purchase this stock at a strike price of $25 anytime in the next six months. In return, Nicole agrees to pay Greg a premium of $2. During this time the company releases its earnings report. The company beats analysts' expectations and the stock price triples. Greg:

1)will make a profit

2)has written a call option

3)has written a put option

4)will suffer a loss

I only

II only

III only

II and IV only

III and IV only