Question
Gabriel offers to play the following game with you: he will let you roll 1 6 sided die but you must pay him $1
Gabriel offers to play the following game with you: he will let you roll 1 6 sided die but you must pay him $1 if you roll a 3, $2 if you roll a 2, $3 if you roll a 1, and $0 otherwise. From your point of view, playing this game is like a option with a strike price of Since you can only lose money, he should be willing to pay you to agree to play this game. How much would be fair?
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Introductory Statistics
Authors: Prem S. Mann
8th Edition
9781118473986, 470904100, 1118473981, 978-0470904107
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