Problem 3 (20 pts) Edwina, a commodities broker, has acquired an option to buy 1,000oz of gold at $50 per oz. If she takes the option and if Congress relaxes import quotas, she can sell the gold for $80 per oz. If she takes the option and Congress does not relax the import quotas, however, the company will lose $10 per oz. Edwina believes that there is a 50% chance that the government will relax the quota. She also has the option of waiting until Congress decides whether to relax the import quota. If she adopts this strategy, however, there is a 70% chance that some other broker will have already taken the option. (1). If Edwina is risk-neutral, what should she do based on the best-worst and the best expectation criteria? Show all work. (2). If Edwina's utility function is given by u(x)=(10,000+x)1/2 where x is any reward (can be negative). Then, what should she do based on the best-worst and the best expectation criteria? Show all work