8. The claim cost of an insurance company follows a normal distribution with an expected value of $500 million and a standard deviation of $100 million. Based on the above, work on the following questions.

A) In the graph, indicate the probability of insolvency of the insurer when it has an asset of $750 million. Please clearly label the axes.

B) Show the probability of insolvency of the insurer after the insurer raises $100 million of new capital.

C) Compute the probabilities of insolvency for the insurer when its total assets are respectively $750 and $850 million.

D) What is the firms value at risk at the 1% level?