The "EKG" is a new security with a payoff designed to simulate the electrocardiogram heart race of an excited speculator. For simplicity, you may assume that the risk-free interest rate is zero. a) How can you construct the "EKG payoff by buying and selling calls, buying and (short) selling stock, and borrowing or lending? Be specific about amounts and strike prices! b) How can you construct the portfolio by buying and selling puts, buying and (short) selling stock, and borrowing or lending? Be specific about amounts and strike prices! "EKG" Payoff 90 80 70 60 $50 30 Plot Area 20 10 0 20 40 60 Spot Price 80 100 The "EKG" is a new security with a payoff designed to simulate the electrocardiogram heart race of an excited speculator. For simplicity, you may assume that the risk-free interest rate is zero. a) How can you construct the "EKG payoff by buying and selling calls, buying and (short) selling stock, and borrowing or lending? Be specific about amounts and strike prices! b) How can you construct the portfolio by buying and selling puts, buying and (short) selling stock, and borrowing or lending? Be specific about amounts and strike prices! "EKG" Payoff 90 80 70 60 $50 30 Plot Area 20 10 0 20 40 60 Spot Price 80 100