IL.ll You are a risk agent, whose utility is given by U(w)-2w. Your initial wealth is $100,000 is faced with a potential loss of $85,000 with a probability of p-0.10 What is the maximum premium you would be willing to pay to protect against this loss?(i.e. probability of earning $O is 0.90 and probability of losing $85,000 is 0.10... but think what your opportunities of terminal wealth are) What is the agents risk appetite? Find the expected value Find the expected utility(of wealth) .Find the maximum premium(y) to equate U(w-y)-E[U(W)] r U(EV-y)-EU(W)] What if you were given the opportunity to purchase insurance for $7,500, would you take the insurance? Why? Show all your work