In the Olympic finals, only three teams are represented; USA, England, and China. Svetlana believes the USA will win and offers even odds of 1:1. Roberto is supporting England and is offering 2:1 odds. (So, if England wins, Roberto keeps his money. If one of the other teams wins, Roberto pays $2 for each dollar bet.) Finally, Jeff supports China as given by his 5:4 odds. Determine the optimal way of dividing $100 to bet that ensures the largest winning

6. In the Olympic nals, only three teams are represented; USA, England, and China. Svetlana believes the USA will win and offers even odds of 1:1. Roberto is supporting England and is offering 2:1 odds. (So, if England wins, Roberto keeps his money. If one of the other teams wins, Roberto pays $2 for each dollar bet.) Finally, Jeff supports China as given by his 5:4 odds. Determine the optimal way of dividing $100 to bet that ensures the largest winning. A message from this example is that whenever exuberance causes individ- uals to offer strong odds, such as during a political campaign, arbitrage is available. To see the arbitrage opportunities from this example, if a third of the money is bet with each person, only one can win; the winnings from one other bet cover the loss and winnings from the third are prot. But this exercise, as with the gender example, also emphasizes the impor- tance of understanding the provided information. When betting with one of these individuals, such as Jeff, is the bet whether China will or will not win, or does the bet require you to put forth a team and you win money only if your team wins. The difference is huge; the intent is the rst, but, as a challenge, can the second be handled