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Apple faces an 11% chance of a potential loss of $11 million next year. Suppose that the risk-free rate of interest is 5%. What is

Apple faces an 11% chance of a potential loss of $11 million next year. Suppose that the risk-free rate of interest is 5%. What is the actuarially fair cost of full insurance closest to?

a.$1.15 million.

b.$0.9 million.

c.$1.21 million.

d.$1.01 million.

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