Suppose that you are risk neutral and the company offers the use of their Model II machine to you for one bet for a price of $5 + lOp, for any p you choose in [0,1]. What should be your response to...

Suppose that you are risk neutral and the company offers the use of their Model II machine to you for one bet for a price of $5 + lOp, for any p you choose in [0,1]. What should be your response to the company?

a. "Thanks, I'll buy it with p = 1, and place a bet."

b. "Thanks, I'll buy it with p = 0, and place a bet."

c. "No thanks; although using your computer at the price you quote for some p would be to my advantage if I were to place a bet, I'm still better off not betting at all."

d. "No thanks; using your computer at the price you quote for any p would not be to my advantage if I were to place a bet. I choose not to bet at all."