b) Suppose the price of a certain stock is KES70 on June 30" and the stock may go up in November. An investor has the following alternatives: The investor spends KES700,000 in cash to buy 10,000 shares on June 30" or ii ) The investor pays a premium of KES40,000 to purchase a call option to buy 10,000 shares at strike price of KES72 on 15" November. Examine the investors profits and returns in the two scenarios (ignore interests) if i) The stock price goes up to KES80 on 15" November. (6 Marks) ii ) The stock goes down to KES56 on15th November (6 Marks) iii) Which plan would you counsel the investor to adopt and why? (2 Marks)