Question
Your insurance company has a policy to insure personal property. Assume you have a laptop computer worth $ 1,700 , and there is a 1
Your insurance company has a policy to insure personal property. Assume you have a laptop computer worth $1,700, and there is a 1% chance that the laptop will be lost or stolen during the next year. What would be a fair premium for theinsurance? (We are assuming that the insurance company earns noprofit.)
A fair premium for the insurance would be _____?
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An Introduction to the Mathematics of Financial Derivatives
Authors: Ali Hirsa, Salih N. Neftci
3rd edition
012384682X, 978-0123846822
