Final answer:
To calculate the expected annual profit for an insurance company, subtract the expected loss from the annual premium collected. The expected annual profit for the insurance company is $260, which is not one of the choices provided in the question.
Step-by-step explanation:
To calculate the expected annual profit for the insurance company insuring an antique stamp collection, we need to consider both the premium collected and the expected loss from potential claims. Since the insurance company assesses the chance of the stamp collection being lost, stolen, or destroyed at 0.002 (or 0.2%), the expected loss can be calculated as the value of the stamp collection multiplied by the probability of the event occurring. In this case, the expected loss would be $20,000 times 0.002, which equals $40. The annual premium collected is $300. Therefore, the expected profit can be found by subtracting the expected loss from the premium collected.
Expected Profit = Premium Collected - Expected Loss
Expected Profit = $300 - $40
Expected Profit = $260
Looking at the options provided ((a) $200, (b) $400, (c) $500, (d) $600), none of them match the calculated value. Since the calculated expected profit is $260, the question as provided does not have a correct choice listed.