Oyster Limiteds business heavily relies on imported raw materials from Australia. Now Oyster Limited has the concern that the supply from Australia may not be available anymore due to the global trade war. If that is the case, the manufacturing cost for Oyster Limited will be much higher, pushing down its profits dramatically. The marginal tax rate will also fall from 35% to 10%. An insurance firm has agreed to write a trade insurance policy that will pay Oyster Limited $2200000 in the event of the Australian supply being cut off. The chance of the event is estimated to be 24%, with a beta of -1.6. Assume the risk-free rate of interest is 3.3%, and the return on the market is 11.7%.

The actuarially fair premium Oyster Limited needs to pay is closest to:

$452287

$186067

$143224

$587581