A Decision-Maker Is Faced with a Choice Between a Lottery $U = I + 500$

Multiple Choice

A decision-maker is faced with a choice between a lottery with a 30% chance of a payoff of $30 and a 70% chance of a payoff of $80, and a guaranteed payoff of $65. If the decision maker's utility function is $U = I + 500$ , what is the risk premium associated with this choice?

A) $0
B) $1
C) $2
D) $3