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please help ESTION 1 ristina owns a condo in South Padre Island. She is considering buying flood insurance for her condo since her home owners'

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ESTION 1 ristina owns a condo in South Padre Island. She is considering buying flood insurance for her condo since her home owners' policy does not cover flood damage. There is a 20% chance that a hurricane will hit the island, causing $100,000 of damage to condo. Because she is risk averse, she would pay up to $1,000 more than her expected losses for flood insurance. What would be the maximum price she would pay for coverage? STION 2 uld a risk neutral insurance company sell her insurance for $20,500 No, a risk neutral insurance company would not sell her insurance at any price - hurricanes are too risky. Only a risk-loving insurance company would sell insurance. No, a risk neutral insurance company would not sell insurance unless she paid at least $21,000 Yes, a risk neutral insurance company would sell her insurance for any price greater than $18,000 Yes, a risk neutral insurance company would sell her insurance for any price greater than $20,000 Yes, a risk neutral insurance company would sell her insurance for any price greater than $20,500

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