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( don't forget the diiagram)An investor sells a European call on a share for $4. The stock price is $47 and the strike price is
( don't forget the diiagram)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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