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An investor sells short 200 shares of ABC stock at $5.25 a share. He sells two put contracts (100 shares each) with a striking price

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An investor sells short 200 shares of ABC stock at $5.25 a share. He sells two put contracts (100 shares each) with a striking price of S5 and a premiumof S0.50 a share. Assume interest 0% annual effective (a) Draw a time diagram for the short sale, and the sold put. (b) What is the investor's profit if the spot price is below $5 at expiration? (c) The investor will be making profit as long as the spot price is less than what value at expiration

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