​Use the Following Setup for Question

Multiple Choice

​Use the following setup for question
Both Nadia and Samantha are applying to insure their car against theft.Nadia lives in a secure neighborhood,where the probability of theft is 10%.Samantha lives in a lesser secure neighborhood where the probability of theft is 25%.Both Nadia and Samantha own cars worth $10,000,and are willing to pay $100 over expected loss for insurance.
-If the company can correctly anticipate the adverse selection,what premiums would it charge?​

A) ​$2500
B) $2600
C) $1000
D) ​$1100