Socrat owns just one ship. The ship is worth $200 million dollars.
If the ship sinks, Socrat loses $200 million. The probability that
it will sink is 0.02. Socrates' total wealth including the value of
the ship is $225 million. He is an expected utility maximizer with
von Neuman-Morgenstern utility U(W) equal to the square root of W.
What is the maximum amount that Socrat would be willing to pay in
order to be fully insured against the risk of losing this ship?
a.$4 million
b.$2 million
c.$3.84 million
d.$4.82 million
e.$5.96 million
這題我不管怎麼算我答案都會算成a.
不過正確答案的e.我怎麼湊都算不出來
麻煩版上的高手幫忙解題
先謝謝大家了
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If the ship sinks, Socrat loses $200 million. The probability that
it will sink is 0.02. Socrates' total wealth including the value of
the ship is $225 million. He is an expected utility maximizer with
von Neuman-Morgenstern utility U(W) equal to the square root of W.
What is the maximum amount that Socrat would be willing to pay in
order to be fully insured against the risk of losing this ship?
a.$4 million
b.$2 million
c.$3.84 million
d.$4.82 million
e.$5.96 million
這題我不管怎麼算我答案都會算成a.
不過正確答案的e.我怎麼湊都算不出來
麻煩版上的高手幫忙解題
先謝謝大家了
--
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