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An investor sells a European call on a share for $4. The stock price is $47 and the strike price is $50. Under what circumstances

An investor sells a European call on a share for $4. The stock price is $47 and the strike price is $50.

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 investors profit with the stock price at the maturity of the option.

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