-Bruce Copperwood's Utility of Wealth Curve Is Illustrated in the Above

Multiple Choice

-Bruce Copperwood's utility of wealth curve is illustrated in the above figure. Bruce is presently employed at a salary of $100,000. There is a 10 percent probability that Bruce will be totally disabled, in which case he will have no wealth. The maximum amount that Bruce is willing to pay for a disability insurance policy that would pay him $100,000 in the case of total disability is

A) $10,000.
B) $20,000.
C) $80,000.
D) None of the above answers is correct.