Todd Has $1000

Multiple Choice

Todd has $1000. He is given a choice of flipping a coin, heads wins $1000 while tails loses $500. Todd refuses to accept the gamble. A possible explanation is that:

A) Todd is loss averse; so he prefers to avoid the gamble since his expected utility will be negative even though the expected value of the gamble is positive.
B) Todd is risk neutral; so he prefers to avoid the gamble even though both the expected utility and the expected value of the gamble are positive.
C) Todd is risk neutral; so he prefers to avoid the gamble since both the expected utility and the expected value of the gamble are negative.
D) Todd is loss averse; so he prefers to avoid the gamble even though both the expected utility and the expected value of the gamble are positive.