Question 8 (5 points) Mayce's current wealth is $800, but there is a 0.2 probability that she will lose $100. She is risk neutral and she has an opportunity to buy insurance that would restore her $100 if he lost it. Mayce would be willing to pay a bit more than $25 for this insurance. Mayce would be willing to pay up to $20 for this insurance. Since Mayce is risk neutral, he wouldn't be willing to pay anything for this insurance. Since Mayce's utility function is not specified, we can't tell how much he would be willing to pay for this insurance. evious Page Next Page