a. You believe that the stock price of a company called MilliMar will increase in the future. However, the stock is expensive and you cannot afford to buy many stocks in this company. Can you use options to profit on a possible increase in the stock price of MilliMar? Explain! b. Option pricing models such as the binomial model assumes that the payoff of an option can be replicated. What does this mean? Explain using your own words. No formula is needed. c. Will it always be easy to replicate the payoff of an option? Discuss challenges you could meet if trying to replicate the payoff of an option. d. Discuss the following statement: "The seller (writer) of an option can never lose more money on an option transaction than the price of the option