So they should keep $10,000 if they win. Or just sell a stake in the winnings to a less risk-averse third party for $10,000, risk free.
What $10,000?
EDIT: Never mind; I thought he said “the $10,000”.
You could probably sell somebody a 15% chance to win a million bucks for 10k. It’s worth fifteen times that to a risk-neutral agent.
I’m pretty confident that you could sell a true 15% chance to win a million bucks for a lot more than 10k… after all, investment banks make substantially greater gambles regularly.
I’d probably ask for 100k to start and go from there.
So they should keep $10,000 if they win. Or just sell a stake in the winnings to a less risk-averse third party for $10,000, risk free.
What $10,000?
EDIT: Never mind; I thought he said “the $10,000”.
You could probably sell somebody a 15% chance to win a million bucks for 10k. It’s worth fifteen times that to a risk-neutral agent.
I’m pretty confident that you could sell a true 15% chance to win a million bucks for a lot more than 10k… after all, investment banks make substantially greater gambles regularly.
I’d probably ask for 100k to start and go from there.