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Suppose Rock earns $ 1 0 0 , 0 0 0 if he is healthy, and $ 4 0 , 0 0 0 if he

Suppose Rock earns $100,000 if he is healthy, and $40,000 if he falls ill. Suppose further that he has a 0.5% chance of falling ill. If Rock were to purchase full insurance, the payout would be equal to ____. The actuarially fair premium for this payout would be equal to ____

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