3. A homeowner in rural Oregon is considering adding defensible space and thinning trees around their home to improve protection against wildres. The following table gives the homeowner's net income under four possible scenarios: with and without a wildre taking place, and with and without wildre safety investments on the property. Assume the probability of a wildre affecting the property is 0.5. Contingency Net Income with Net Income without Probability investments investments No Wildre a. Calculate the expected surplus from the wildre safety investments. (2 points) b. Assume that the homeowner's utility is given by U (C) = ln(c), where c is net income. Set up the equation that would allow you to calculate Option Price. You don 'I need to calculate it just set it up. (3 points)