Ms. Figaro has an asset that will produce a monthly cash flow of $10,500 with prob. 0.5 or $2,400 with prob. 0.5, but Ms. Figaro is risk averse. Her expected utility function has u(x) = x^0.5. A risk neutral financial company has offered to purchase her asset and then pay her a fixed sum $X each month so that she can avoid risk. What value of X will satisfy both the company and Ms. Figaro?

Group of answer choices

a. $5,555

b. $5,655

c. $6,555

d. $6,222