Financial Economics Interview Questions

GrantKeynes
 

[tps_title]Financial Economics Interview Questions[/tps_title]

Casino_at_RWSIn a casino game, you toss a fair coin now. Heads: you win. Tails: you lose. If you win, you get $10 in exactly one year. If you lose, the casino takes $5 from  you immediately. The one-year interest rate is 5%. How much should you pay to play this game?