The International Maritime Bureau Said the Waters Off Somalia Are

The International Maritime Bureau said the waters off Somalia are the world's most dangerous, accounting for nearly a third reported pirate attacks worldwide. Suppose all boats are insured to $100,000 and pay a premium of $10,000 each. Suppose 10 out of 100 boats are attacked by pirates and these 10 file claims with their insurance. If the insurance company's only costs are the claims it must pay, has the insurance company earned an economic profit?

A) Yes, they earned an economic profit of $90,000.
B) No, they broke even.
C) No, they sustained an economic loss of $90,000.
D) Yes, they earned an economic profit of $1,000,000.