Question: Hi, I need help solving this exercise Smith is in jail and has 3 dollars; he can get out of jail if he has 7

Hi, I need help solving this exercise

Smith is in jail and has 3 dollars; he can get out of jail if he has 7 dollars. A guard agrees to make a series of bets with him. If Smith bets A dollars, he wins A dollars with probability 0.4 and loses A dollars with probability 0.6. Find the probability that he wins 7 dollars before losing all of his money if (i) Smith bets 1 dollar each time (timid strategy). (ii) Smith bets, each time, as much as possible but not more than necessary to bring his fortune up to 7 dollars (bold strategy). (iii) Which of the two strategies above gives Smith the better chance of getting out of jail

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