Consider the contingent states insurance model. Juliana is a risk averse woman that prefers to have more instead of less wealth, with initial wealth of $2,000. She faces the following distribution of random loss:

LX= (0, 200; 0.5, 0.5).

If Juliana is offered an actuarially fair insurance premium, the price per unit of coverage should be $__________.

Since Juliana is risk averse, with such premium, her optimal coverage (maximizing expected utility) will be $____________.

The final wealth of Juliana in the normal state of an insurance plan with full coverage (X(200)), and an actuarially fair premium is: $___________ ; and the final wealth in the bad state of such insurance plan is: $______________.

The planX(100)offers a partial coverage of $100 at an actuarially fair premium. The final wealth in the normal state of this plan is: $__________; and in the bad state the final wealth is: $______________.

Write the probability distributions of the insurance plans described in the previous question:X(100)andX(200).

Using the insurance plans from question 1, the expected value of the planX(200)is: EX(200) =__________, and the expected value of planX(100)is: EX(100) = _____________.