=+h. Finally, suppose that tastes are state-dependent and that the functions uB 1x2 5 0.47x 0.5 and uG 1x2 5 0.53x 0.5 (where uB applies in jail and uG applies outside) allow us to represent Sunny’s tastes over gambles using an expected utility function. Assuming that Sunny still chooses from the insurance contracts that satisfy the relationship between b and p you derived in (c), what contract will he pick? What if uB 1x2 5 0.53x 0.5 and uG 1x2 5 0.47x 0.5 instead? Can you make intuitive sense of your answers?