Consider an insurance company offer a "standard contract" with the premium r-$100 and payout q-$500 to anyone who will purchase it. Peter has healthy-state income In- $500 and sick-state income Is $0. He has probability of illnessp-0.1. Is the standard contract fair and/or full for Peter? If he ends up getting sick, what will his final income be? (please show all your calculations)

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