Bookmakers organize betting on football games in the following way: First, they determine a “point spread” that one team is expected to beat with 50-50 probability. Then bettors are allowed to bet on whether the team will beat the spread. They may take either side of the bet and are offered slightly unfavorable odds either way. Show the budget line faced by the bettors. What will a risk-averse bettor do in these circumstances? What will a risk-preferring bettor do? Can you think of any reason why a risk averter might still bet?