HOuse is worth $200,000. Your risk of a flood is .5%. Such a flood would destroy your house and not be covered by home owner insurance. you buy flood insurance for $1200. Are you risk averse or seeking?

a. you are risk seeking because your expected loss is smaller than the premiium

b. you are risk averse, because your expected loss is larger than premium

c. you are risk averse, because your expected loss is smaller than premium