The Following Questions Apply to the Following Simplified Bank Balance

Multiple Choice

The following questions apply to the following simplified bank balance sheet

-Shareholders in the bank above are offered the following deal.The bank will gamble the whole loan book on a double or nothing coin toss (i.e.50% chance loan book doubles in value,50% chance it has zero value) .From the shareholders point of view,this deal

A) gives them a 50% chance of losing 10 and a 50% chance of gaining 10
B) gives them a 50% chance of losing 10 and a 50% chance of gaining 20
C) gives them a 50% chance of losing 10 and a 50% chance of gaining 100
D) gives them a 50% chance of losing 100 and a 50% chance of gaining 100
E) gives them a 50% chance of losing 100 and a 50% chance of gaining 200