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7. Insurance Pricing (15 pts.) Use the information in the table below to answer the...

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7. Insurance Pricing (15 pts.) Use the information in the table below to answer the following questions and fill in all missing values in the table Show all of vour work. Crop insurance analysts have determined the likelihood of the following possible yield, price, and revenue outcomes for soybean production in Ilinois: Soybean Yield SoybeanSoybeanYield ue Insuran Value Revenue Weather ProbabilityConditions Price Revenue ce Insurance os(bushels/acre) (S/bushel (S/acre) $500.00 $540.00 $575.00 $605.00 $660.00 $630.00 $600.00 Value Drought (very dry) Dry Flooding (very wet) Wet 0.05 36 $11.50 $10.50 $11.00 $10.00 47 0.05 46 53 0.5 0.15 0.05 63 70 78 $9.50 $8.50 $8.00 Normal Above Average Excellent i. Using the information above, calculate the fair premium (S/acre) for a soybean yield insurance policy that guarantees 5 Show your work. 5 bushels per acre, with insurance losses valued at $9.50 per bushel

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