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Person A offers a bet of 3:2 odds that a team will win their game, so if the team wins person A keeps all of
Person A offers a bet of 3:2 odds that a team will win their game, so if the team wins person A keeps all of the money bet. If the team loses, Person A pays the better $3 for each $2 that is wagered.
Person B thinks the team will lose, and offers 4:3 odds.
a) A better has $100. Set up a hedge where the person will win the same amount of money no matter what happens
b) how much money is the better guaranteed to win no matter what happens?
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