Jim Holtzhauer Is Playing the Tables at Vegas

Multiple Choice

Jim Holtzhauer is playing the tables at Vegas. He currently has $10,000, which I will denote as 10K in order to keep things simple. He is looking at a bet where with ½ chance he can win 6K while with ½ chance he will lose 2K. Jim's utility of wealth function is given by U(W) = (W) ^2. (U(W) is equal to the W Squared) . Based on this information, you would conclude that:

A) Jim will be willing to give up 2K to avoid this gamble.
B) Jim will need to be paid at least 2.65K in order not to accept the gamble.
C) Jim will need to be paid at least 6K in order not accept the gamble,
D) Jim's Certainty Equivalent is approximately 10K.