Professor Koppenhaver has the opportunity to engage in a gamble that will net him either a gain of $50,000 or a loss of $25,000, each with probability of 72. Prof. Koppenhaver is an expected utility maximizer with the underlying utility function defined over income (y): U(y) = 12.5859 7.4267e-0.00002114 Would Koppenhaver want to undertake this gamble if his current income is $200,000? [NOTE: in both parts of this question you should carry out your calculations with exacting precision, i.e., to at least four significant digits past the decimal point!] Suppose he could securitize this gamble, which means he prints up 100 shares in the gamble, each of which gives a 1/2 chance of a gain of $500 and 1/2 chance of a loss of $250. Suppose Koppenhaver has 99 friends who are his clone, each of whom therefore has precisely the same utility function as Koppenhaver as well as identical incomes. Would his friends be willing to pay Koppenhaver $100 for the 1% share of the gamble? Professor Koppenhaver has the opportunity to engage in a gamble that will net him either a gain of $50,000 or a loss of $25,000, each with probability of 72. Prof. Koppenhaver is an expected utility maximizer with the underlying utility function defined over income (y): U(y) = 12.5859 7.4267e-0.00002114 Would Koppenhaver want to undertake this gamble if his current income is $200,000? [NOTE: in both parts of this question you should carry out your calculations with exacting precision, i.e., to at least four significant digits past the decimal point!] Suppose he could securitize this gamble, which means he prints up 100 shares in the gamble, each of which gives a 1/2 chance of a gain of $500 and 1/2 chance of a loss of $250. Suppose Koppenhaver has 99 friends who are his clone, each of whom therefore has precisely the same utility function as Koppenhaver as well as identical incomes. Would his friends be willing to pay Koppenhaver $100 for the 1% share of the gamble