A protective put consists of a long put strike at 4, premium of $3.5, and a long stock that was bought at $38. What is the profit of the protective put if the stock price is? a. $35? b. $42? An investor sells a European call on a share for $13. The strike price is $36. 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