A friend of yours lost USD 185,000 at an FDIC-insured bank that failed
(a) Draw a graph in the space below with (i) the payoff diagram for their deposit account without deposit insurance, (ii) the payoff diagram for their account with deposit insurance and (iii) the payoff diagram for the deposit insurance. Carefully label all axes, diagrams, and the level of any strikes.
(b) Briefly describe two ways that your friend could have avoided this loss while still having some or all of their money with this bank.