Solution (source code)

= Solution

The time-zero indifference price is the unique $\pi(Y)$ satisfying
$$
u(Y-(1+r)\pi(Y))=u(0).
$$
The left side is continuous and strictly decreasing in the cash amount by part (a), and its limiting values bracket $u(0)$; existence follows by the intermediate-value theorem and uniqueness by strict monotonicity.