The question is attached below

.r .4 3. (31 Points) Ferris is a stock broker, who has the option to devote some of his T = 50 weekly work hours work towards illegal insider trading. Let .1! be the number of hours Ferris spends on insider trading each week. The hourly wage he earns from legal trading is w = 2. The wage that he earns from insider trading is higher (in = 3), but there is some probability, p that he will get caught if he does so (if he chooses a: > 0}. If he does participate in illegal activity {:13 > D} and he gets caught (which will happen with probability p), he will forfeit all of his illegal earnings, and pay a ne [ f = 1) of f x a: = :3. His utility function over consumption is u(c} = JE (a) (10 Points) 011 a set of axes with cg on the vertical axis and cg, on the horizontal, graph Ferris' 'budget constraint5 and the certainty line. He sure to indicate where the budget constraint crosses the vertical (cg) axis and the certainty line. Show values on the CE and ch axes up to about 150. You will be asked to add to this graph below. (b) (5 Points) How high must the probability of detection be in order for Ferris to devote any time to insider trading? In other words, what is the lowest p for which or" > U? (c) (10 Points) How much time will Ferris spend insider trading each week if the probability of detection is p = g? Given the amount of insider trading, how much will Ferris wind up consuming if he gets caught? How much will he consume if he does not get caught? (d) (6 Points) On the graph that you made for part (a), draw the indifference curve that corresponds to Ferris's optimal level of insider training. Be sure to indicate c; and c; on the graph