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c) Bonus question: (+10 points) Suppose Mr. Oscar is risk-averse and his utility function is given by: u(x)=2 - (1.01)- i ) Is Mr. Oscar

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c) Bonus question: (+10 points) Suppose Mr. Oscar is risk-averse and his utility function is given by: u(x)=2 - (1.01)- i ) Is Mr. Oscar a deltaperson? Explain. (5 points) ii ) Suppose Mr. Oscar is a delta person. Given the same decision opportunity as above (Buy a stock/CD), what would be the most he is willing to pay for clairvoyance? (5 points)

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