1. A fisherman owns a fishing business, which will make $150,000 per year if it's a good fishing year I, but make $50,000 if it's a bad fishing year. There is 80% if it is good, and there is 20% if bad. Suppose that the fisherman can make a bet that there will be a bad year at 3-1 odds, which means the following: If there is no bad year, the fisherman will lose what they bet. If there is a bad year, they will get back whatever they bet, plus 3-times what they bet (thus ifthey bet $10,000 and there is no bad year, they lose $10,000. If there is a bad year, the fisherman keeps the $10,000 bet, and is also paid an additional $30,000). a. If the fisherman chooses not to make a bet on the year, what is the expected profit of the fisherman's operation? b. To hedge perfectly such that the fisherman is indifferent to whether there is a bad year, how much should the fisherman bet that there will be a bad year? c. If the fisherman bets $25,000 on the bad year, what is the expected value of the operation