Question: Q7. Julius'utility function is U(W)=ln(W). His current wealth is $5,000. He is now given a chance to buy a futures contract on Nickel that gives

Q7. Julius'utility function is U(W)=ln(W). His current wealth is $5,000. He

Q7. Julius'utility function is U(W)=ln(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

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