5. (20 pts) Consider a risk averse agent with a utility function u(2) Vx. Assume she faces a risk of losing $64 of her wealth $100 with probability p= 1. (a) Find the highest insurance premium, 7*, that agent is willing to pay. (b) Calculate insurance premium, 7', in a competitive insurance market, i.e. expected profit of the risk neutral insurance firm is zero. (c) Calculate expected profit of the risk neutral insurance firm, if it charges *. (d) Calculate agent's current (w=100) Pratt risk aversion measure