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Questions 7-9: Use the following information to answer the next three questions. Gigi is risk neutral. She is facing the following deals. Deal X Deal

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Questions 7-9: Use the following information to answer the next three questions. Gigi is risk neutral. She is facing the following deals. Deal X Deal Y $1,400 $800 0.5 0.6 0.5 SO 0.4 $300 7. Which deal should she choose? a) Deal X b) Deal Y having a lo c) She is indifferent between deal X and deal Y. What is his 8. Is she a deltaperson? a) Yes b) No c) There is insufficient information to answer. 9. If $50 is added to each payoff of deal X, what is the new CE of deal X? a) $50 b) $500 C) $650 d) $750

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