​Alan Is Offered a Gamble

Multiple Choice

​Alan is offered a gamble.Heads he wins $100,tails he wins $20.If the game costs $60,would he play?

A) ​Yes he would play since the expected value is equal to the price of the play
B) Yes he would play since the expected value of the play is higher than the price of the play
C) No he would not play since the price of the play is higher than the expected value
D) ​No he would not play since this is a fair bet and he is not being offered any risk premium