Suppose a Person's Utility of Wealth Is Given By $U ( W ) = \sqrt { W }$

Multiple Choice

Suppose a person's utility of wealth is given by $U ( W ) = \sqrt { W }$ and his or her initial wealth is 10,000.What is the maximum amount he or she would pay for insurance against a 50 percent chance of losing 3,600?

A) 1,800.
B) 1,900.
C) 2,000.
D) 2,100.