in Bicel model based on the FinCorp example discussed in the text is shown below. The model allows you to use any varlety of options, stock, and lending or borrowing with a set investment amount and dem onstrates the investment flexibility of options. 0.02 9000 CA STOC All call options Dollar value $85 $90 $8,50 $9,000 8.160 8.160 of portfollo as a function of FinCorp price $95 $100 $105 59.500 $10,000 510.500 4,500 9.000 13,50 8.660 9.160 $110 $11.000 18,000 10,160 Portio B. All call options $85 eb.b = 100.0% Rate of return as a function of FinCorp price $90 $95 $100 $105 0.00 16.79 - 100.0% 50 0% 0.08 50.09 $110 100.04 Excel Questions 1. Plot the rate of return to the call-plus-bills strategy using a diagram like that in Figure 15.5 but now assuming the investor uses an in-the-money call option with a strike price of $80. Assume the calls sell for $15. The higher cost for these calls compared to the at-the-Thoney calls will result in less money being placed in T-bills because the investment budget is still $9.000. 2 Compare the plots of rate of return for the strategies using at-the-monex calls (as in Figure 15.5) and your solution to Question 1. Which strategy is riskier?