4. Following the Oct. 7th earthquake in Sweet Home, OR, an Applied Economic professor is worried about the big one, and is considering retrotting his home for better seismic resiliency. The following table gives the professor's net income under four possible scenarios: with and without a large earthquake taking place, and with and without seismic updates on the home. Assume the probability of the large earthquake happening while the professor lives in Oregon is 0.5. Contingency Net Income with Net Income without Probability investments investments No Earthquake \\ 300 400 0.5 Earth uake 500 200 0.5 a. Calculate the expected income with and without the seismic safety investments assuming that the professor's utility function is U = ln(c), where c is net income. 3 pts. b. Calculate the expected surplus from the seismic safety investments. 2 pts c. Calculate the option price of the seismic safety investments. 4 pts