Mr. Euler owns a house whose value is $500,000. It is known that the probability that...

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Mr. Euler owns a house whose value is $500,000. It is known that the probability that there is a fire and his house is be burnt to ash ( the value of your house becomes zero) in one year is 0.001 (=1/1,000). He is considering about purchasing an insurance if the condition of the insurance contract is attractive. An agent working for an insurance company InsCo approached to him and offered an insurance contract such that: 1) Mr. Euler pays amount of money $C for the one-year contract, and 2) If there is a fire and Mr. Euler's house is burnt, the company will give him $500,000. Mr. Euler has $100,000 cash in addition to the house, and he does not have any debt. (So his current total asset is $600,000.) Current total asset of the InsCo is $1,000,000,000. a. Draw the decision trees for 1) Mr. Euler and 2) InsCo. Mr. Euler owns a house whose value is $500,000. It is known that the probability that there is a fire and his house is be burnt to ash ( the value of your house becomes zero) in one year is 0.001 (=1/1,000). He is considering about purchasing an insurance if the condition of the insurance contract is attractive. An agent working for an insurance company InsCo approached to him and offered an insurance contract such that: 1) Mr. Euler pays amount of money $C for the one-year contract, and 2) If there is a fire and Mr. Euler's house is burnt, the company will give him $500,000. Mr. Euler has $100,000 cash in addition to the house, and he does not have any debt. (So his current total asset is $600,000.) Current total asset of the InsCo is $1,000,000,000. a. Draw the decision trees for 1) Mr. Euler and 2) InsCo.