World Series betting
You may bet only on individual games of a best-of-7 series (first to 4 wins). With $100, you want to net exactly +$100 if your team wins the series and −$100 if it loses, each game a 50/50. How much should you bet on the first game (in dollars)? (to 2 decimals)
Show hints (2)+
- Build the binomial tree of net payoffs from the end.
- The opening stake is half the difference of the two child values.
Answer
Reveal answer →Final answer
31.25 (± 0.05)
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