Question: Please show the steps clearly This is all the info there is Please solve like this Q3. A financial contract pays a reward to the

 Please show the steps clearly This is all the info there

Please show the steps clearly

This is all the info there is Please solve like this

Q3. A financial contract pays a reward to the participants when losses are a below a certain threshold, this is a particular type of problem which Weishaus calls a "Bonus problem. The bonus, dividend, or refund amount is expressed as a maximum between 0 and the refunded amount. For example, a 15% refund is paid on the difference between the $100 premium and the loss L where losses are distributed exponentially with parameter 0=80. Find the expected reward payment. [25 pts] Q3. A financial contract pays a reward to the participants when losses are a below a certain threshold, this is a particular type of problem which Weishaus calls a "Bonus problem. The bonus, dividend, or refund amount is expressed as a maximum between 0 and the refunded amount. For example, a 15% refund is paid on the difference between the $100 premium and the loss L where losses are distributed exponentially with parameter 0=80. Find the expected reward payment. [25 pts]

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