2. CEO Resigns! Suppose your utility function is of the following form, 200 u(x) = 200 where x is the wealth you hold. Suppose your wealth is $10 and a share in a clothing company. The share gives a return of either $90 if the company is a strong one or $10 if the company is weak. The true nature of the company is uncertain to you. Your initial belief is that it is strong with probability 1/3 and (therefore) weak with probability 2/3. a) What is the lowest price you would be willing to sell the share at? Now suppose you get news that the said company's CEO has resigned. It is well understood (!) that the chances of such a resignation taking place if the company is a strong one is 10%. On the other hand if the company is a weak one, the chances of such a resignation is 70%. b) Given this bit of news, what is the lowest price you would be willing to sell the share at?