Exercise 2 (20 pts) The insurer expects to underwrite premium of in the specific region and period. To hedge his catastrophic risk the insurer has taken a long position in 40 cat futures at the forward price c=0,60. Calculate the insurer's gain or loss by the end of the period if: Either regional and insurer's loss ratio achieved 215%, Insurer's administrative and acquisition costs amounted to 20% of the gross premium. Exercise 2 (20 pts) The insurer expects to underwrite premium of in the specific region and period. To hedge his catastrophic risk the insurer has taken a long position in 40 cat futures at the forward price c=0,60. Calculate the insurer's gain or loss by the end of the period if: Either regional and insurer's loss ratio achieved 215%, Insurer's administrative and acquisition costs amounted to 20% of the gross premium