Business, 17.12.2019 02:31 andykuzy5447

Global gas international offers to subcontract the halidurton heavy construction corporation to build an oil pipeline from canada to new orleans for $500 million. the probability that the oil pipeline will leak causing environmental damage is θ. if so, the legal liabilities will be $600 million.

a. if halidurton is risk neutral and liable for the damages from a leak, what is the θ such that it is indifferent between accepting or rejecting the contract?

b. if halidurton is risk averse and fair insurance is offered, how much insurance would it buy?

c. if global gas international will partially indemnify halidurton so that the largest damages that halidurton would have to pay is $200 million, what is the θ that leaves it indifferent about accepting the contract?

d. if partially indemnified, how much fair insurance will halidurton buy?

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 20:30

Which of the following best describes how the federal reserve bank banks during a bank run? a. the federal reserve bank regulates exchanges to prevent the demand for withdrawals from rising above the required reserve ratio. b. the federal reserve bank acts as an insurance company that pays customers if their bank fails. c. the federal reserve bank has the power to take over a private bank if customers demand too many withdrawals. d. the federal reserve bank can provide a short-term loan to banks to prevent them from running out of money. 2b2t

Answers: 2

Answer

Business, 21.06.2019 21:00

Which of the following is a reason why it is important for students to study strategy and the strategic management process? answers: studying strategy and the strategic management process can give students tools to evaluate the strategies of firms that may employ them.it can be very important to a new hire's career success to understand the strategies of the firm that hired them and their place in implementing these strategies.while strategic choices are generally limited to very experienced senior managers in large organizations, in smaller and entrepreneurial firms many employees end up being involved in the strategic management process.all of these.

Answers: 3

Answer

Business, 22.06.2019 01:50

Which statement below best describes george waring's approach to solving the problems of water-borne illness? a. waring is going with his "gut," because he believes that instincts and emotions are the best guides for action. b. waring efficiently and thoroughly lays out the case for why the problems are too large and overwhelming to be solved: people should just move out of cities back to their farms. c. waring has gathered the testimonies of people who live in densely populated areas in order to learn how they themselves have solved their problems. d. waring exhibits the industrial age's increased respect for and reliance on science and the scientific method.

Answers: 1

Answer

Business, 22.06.2019 11:20

Money aggregates identify whether each of the following examples belongs in m1 or m2. if an example belongs in both, be sure to check both boxes. example m1 m2 gilberto has a roll of quarters that he just withdrew from the bank to do laundry. lorenzo has $25,000 in a money market account. neha has $8,000 in a two-year certificate of deposit (cd).

Answers: 3

Answer

You know the right answer?

Global gas international offers to subcontract the halidurton heavy construction corporation to buil...

Questions