Lucy and Henry each have $7299. Each knows that with Chi probability. they will lose 85% oftheir wealth. They both have the option of buying 0 units of insurance. with each unit costing $0.1. Each unit of insurance pays out $1 in the event the loss occurs. The cost of the insurance policy is paid regardless of whether the loss is incurred Lucy's utility is given by \"L [1:] = 2:. Henry's utility is given by 113(2) : . Answer the following: (If rounding is needed. only round at the end and write your answer to three decimal places.) a) (0.5 marls) Without insurance. what is the expected value of the loss? D b) (05 marks) For Henry. facing the "lottery " above without any insurance is as bad as losing how many dollars for sure? D c) ('I mark] Find Lucy's utility maximising choice of a. If more than 1 exist, enter the largest u. D d] (1 mark) Now suppose insurance costs $0.2. Find Lucy's utility maximising choice of u. If more than 1 exist enter the largest a. D e) (1 mark) What is Henry's utility maximising choice of C! with the new price of 0.2? If more than 1 exist enter the largest on. D