Part A) Greater American Insurance Group underwrites the property risk from Buckeye Brewery. The policy involves a deductible of $300,000. The premium that Greater American charges is $50,000. Is this premiumactuarially fair? Justify your answer with the calculation.

Part B) Suppose the premium in Part A is not actuarially fair and suppose Buckeye Brewery is willing to purchase the coverage. Provide the rationale to Buckeye Brewerys purchase decision.