Global Gas International offers to contract the Halidurton Heavy Construction Corporation to build an oil pipeline from Canada to New Orleans that will provide Halidurton $600 million in income. The probability that the oil pipeline will leak, causing environmental damage is 0 . If so, the legal liability will be $3,000 million. If Halidurton is risk neutral and liable for the damages from a leak, what is the 0 such that it is indifferent between accepting and rejecting the contract? Halidurton is indifferent between accepting and rejecting the contract if 0 equals 0 percent.(Enter your response rounded to the nearest whole number.) If Halidurton is risk averse and fair insurance is offered, how much insurance would it buy? Assume 0 is such that it is worthwhile for Halidurton to build the oil pipeline.

As a function of theta , Halidurton would be willing to purchase insurance such that it has income of $____________(enter equation) million regardless of whether there is a leak. If Global Gas International will partially indemnify Halidurton so that the largest damages that Halidurton would have to pay is $750 million, what is the theta that leaves it indifferent about accepting the contract?

If Halidurton's liability is capped at $750 million, then Halidurton is indifferent between accepting and rejecting the contract if 0 equals nothing percent. If partially indemnified, how much fair insurance will Halidurton buy? When partially indemnified, Halidurton (if risk averse) would be willing (as a function of 0 ) to purchase insurance such that it has income of $________ (enter equation) million regardless of whether there is a leak.