James runs a hardware store. His utility function is U=w-200, where w is the value of the monetary payments to her, that is, his "wage". 200 is the cost of his effort of running the store. James' next best alternative to managing the store provides him with a utility of 100.

The store's revenue can be high or low with equal probabilities. In a good month revenue equals $1200, in a bad month revenue equals only $400.

Suppose the store owners offer to share a quarter of the stores revenues with James. What will his expected utility be?

Select one:

a.-200

b.0

c.100

d.200