cal Risk (5 marks in total) HPQ, a West Australia-based mining firm, is considering developing a 3-year iron mine project in Brazil. The initial cost is AS5 million. Tim Graham, a strategy analyst of HPQ, estimates this mine will generate 4 million, 5 million, and 6 million BRL in the next 3 years. Additionally, it is known that the probability of expropriation is 0.3 in year 1, 0.4 in year 2, and 0.5 in year 3. When it occurs, HPQ will lose control of the mine project and only 20% of the initial investment can be recovered. To hedge this political risk, Tim suggests his manager buy insurance from American International Group (AIG) to prevent loss. What would be a non- arbitrage premium in AUD for this insurance