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An investor sells a European call on a share for $4. The current stock price is $47 and the strike price is $50. (a) Under
An investor sells a European call on a share for $4. The current stock price is $47 and the strike price is $50. (a) Under what circumstances does the investor make a profit (have positive profit) on the expiration date? (b) Under what circumstances will the option be exercised on the expiration date? (c) Please draw a diagram showing how the investors profit depends on the stock price on the expiration date. To put it another, draw a diagram showing the relationship between the investors profit and the stock price on the expiration date
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