Question: Same question as before just looking for C 2 : Consider the Diamond - Dybvig banking model. Assume, as in the notes, that u (

Same question as before just looking for C2: Consider the Diamond-Dybvig banking model. Assume, as in the notes, that u(c)=(c ^(1- a))/(1- a) and that a =2 Assume that r =0.05 and t =0.5 using the Excel spreadsheet, find the optimal banking contract. What is c? Round your answer to three decimal places.

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