The stock price of Tesla (TSLA) is trading at $290 per share in the beginning of Jan 2023. You heard that TSLA intend to build plants which will cost $10 billion in Mexico. Yet the plan has not been formally approved by the government of Mexico but the result will be known 3 months later. If the plan is approved, it will cause a large rise of TSLA's price (likely $300$370 ). However, if the plan is rejected, it is likely that TSLA's price will slump largely (likely $210$260 ) due to the huge sunk cost in the preparation stage. Suppose there are following European equity options (with 3-month maturity from now) available in the market. Design an option strategy which is likely to utilize this opportunity. \begin{tabular}{lcc} Option Type & Strike Price & Price \\ \hline TSLA March 340 Call & $340 & \\ TSLA March 290 Call & $290 & $10.3 \\ TSLA March 240 Call & $240 & $22.7 \\ TSLA March 340 Put & $340 & $31.2 \\ TSLA March 290 Put & $290 & $29.4 \\ TSLA March 240 Put & $240 & $21.3 \end{tabular} 1.Describe what your strategy is and draw the payoff graph (Hint: think of a strategy we learned in class). 2.Calculate your returns when TSLA price rises to (i) $350 (ii) $230; 3. What are the break-even prices of this strategy