Mel Is Thinking of Going on a Cruise

Mel is thinking of going on a cruise.Mel values a cruise in nice weather at $2,000 and values a cruise in bad weather at $50.According to a very reliable source,the probability of nice weather is 60% and the probability of bad weather is 40%.Trip insurance is sometimes available.If purchased,it allows travelers to delay the cruise until the weather is nice.
In the absence of trip insurance,the most Mel will be willing to pay for the cruise is _______.

A) $1200
B) $1250
C) $1220
D) $1000