economics of insurance

Suppose your preference over lotteries are described by a utility function u(w) = wllz. You own a picture valued at 100,000. With a probability of 1/5 the picture will be damaged and lose 10% of its value. (a) Which insurance premium should you pay if you buy fullinsurance (coinsurance rate [5' = 1) and the loading is equal to 0.01? (10%) (b) What is the optimal value of B? (100/0) (c) What happens to the optimal level [3* if your picture original value was 90,000 while the characteristics of the potential loss are unchanged? Briey comment. (10%) (d) What happens to the optimal level 5* if your picture original value was 100,000 but the loading is close to one? Briey comment. (10%)