Woolworths faces a $2\%$ chance of a potential loss of $$800$ million next year. Suppose market returns, are $8\%$ and Woolworths, which has a beta of $2,$ earns a return of $10\%.$ If the risk of the loss is diversifiable for insurance companies, what is the actuarially fair cost of full insurance closest to$?$

Select one:

a

S$15\mathrm{.}38$ million

$$ b$.$

$$15\mathrm{.}24$ million

$.$

S$14\mathrm{.}81$ million

$$ d$.$ $$15\mathrm{.}09$ million