HI, THIS IS FOR ENGINEERING AND ECONOMIC FINANCIAL MANAGEMENT - EFIN 301. I WILL ATTACH THE ORIGINAL QUESTION BUT YOU CAN DO IT MANUALLY. Please help me solve this so I know what should be the output when I encode it in RStudio. Thank you!

Using R, complete the following steps.

a.Need to create function that can be used to generate the net returns from exercising a Call Option where inputs include strike price, ending price, and premium rate. (Note: The function should be general enough to take any combination of these three inputs and provide the net returns from exercising.)

b.Using the function created above and assuming a strike price of 100 and a premium rate of 5, compute the net returns for a string of ending prices for 50, 55, 60,...,145,150. Plot the net returns against ending price.