Question 3: [TOTAL MARKS 20) a. Oldhat Financial started its first day of operations with 10 million in capital. 130 million in checkable deposits are received. The bank invests 10 million in the UK treasury securities and 20 million in equities that carry risk weight of 1.25, issues a 25 million in commercial loan, 35 million in real estate loans and another 50 million in mortgages, with the following terms: 200 mortgages; each mortgage is for 250,000 and is a 30 year, fixed rate mortgage with a nominal annual rate of 5.25% Commercial loan: 3-year loan, simple interest paid monthly at 0.75%/month The reserve requirement is 0%. A crisis hit and the value of stocks goes down by 30%. The bank has to realise this loss. Prepare and present the bank's balance sheet before and after the crisis. How well capitalised is the bank before and after realising the loss? Also calculate the risk-weighted assets and risk-weighted capital ratio of Oldhat Financial's before and after the crisis. [10 marks] b. Continuing from the question above (3(a)), what options does Oldhat Financial has after the crisis with the new balance sheet? Explain in detail. (Max 250 words) [10 marks)