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1 . An insurer with net worth 1 0 0 has accepted ( and collected the premium for ) a risk X with the following
An insurer with net worth has accepted and collected the premium for a risk X with the following probability distribution: PrX PrX : What is the maximum amount G it should pay another insurer to accept of this loss? Assume the first insurer's utility function of wealth is uw log w An insurer, with wealth and the same utility function uw log w is considering accepting the above risk. What is the minimum amount H this insurer would accept as premium to cover of the loss?
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