Question: Q3. Pascal's utility function is U(W)=In(W). His current wealth is $5,000. He is now given a chance to buy a futures contract on Nickel that

Q3. Pascal's utility function is U(W)=In(W). His current wealth is $5,000. He is now given a chance to buy a futures contract on Nickel that gives him 75% chance of winning $5,000, and 25% chance of losing $4,000. What is his, Julius' certainty equivalent for holding the futures contract? A. 5623.41 B. 2126.58 C. 8.563756 D. 8.517193

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