Question: Answer the following question in essay form. Create an essay form with minimum of 250 words each question. PLEASE AVOID PUlTING YOUR NAMES AND QUESTION

Answer the following question in essay form.
Answer the following question in essay form. Create an essay form with minimum of 250 words each question. PLEASE AVOID PUlTING YOUR NAMES AND QUESTION to your answer to avoid the increase of SIMILARITY INDEX. Upload in PDF format. 1. Assume that you have an opportunity to visit civilization in outer space. Its society is at roughly the same stage of development as the US society is now. Its economic system is virtually identical to that of the United States, but derivative trading is ILLEGAL. Compare and contrast this economy with the US economy, emphasizing the difference due to the presence of derivative markets in the latter. 2. Assume that you are faced with an opportunity made up of three equally likely outcomes. If the rst outcome occurs, you receive P1000. If the second outcome occurs, you receive no money. If the third outcome occurs, you must pay out P100. Given that you can be characterized as risk neutral, how much would you pay to take this risk? Would you willing to pay more or less this opportunity? Explain

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