The correct answer is: A. Increase
The cost of the risk would increase with the probability and amount of loss. This is because the higher the probability of a loss, the more likely it is that the loss will occur. The higher the amount of loss, the more costly it will be to recover from the loss.
Option B is incorrect because the cost of the risk would not decrease with the probability and amount of loss. In fact, the opposite is true. The higher the probability and amount of loss, the higher the cost of the risk.
Option C is incorrect because the cost of the risk would not vary with the probability and amount of loss. The cost of the risk would always increase with the probability and amount of loss.
Option D is incorrect because the cost of the risk would not be none of the above. The cost of the risk would increase with the probability and amount of loss.