A risk-neutral person is one who will pay exactly the expected value for any bet. Thus, a risk-neutral person would pay you $1 (nothing more and nothing less) for a bet where you pay $2 if heads comes up on a fair coin and nothing if tails comes up. Assume that Ted is risk-neutral. Ted is offered the following proposition/bet. I am going to flip a fair coin until a tails comes up. Let N be the number of times that heads comes up (before the first tail). I will pay Ted 2^N dollars. For example, if tails comes up first, Ted will get one dollar, but if four heads come up before the first tails then Ted gets 2⁴ or $16. How much will Ted pay for the bet? (Hint: Simply use the E(R) formula)