You have a normal deck of 52 playing cards You draw cards one by one (Cards drawn are not returned to the deck).
A red card pays you a dollar. A black one fines you a dollar.
You can stop any time you want.

a. What is the optimal stopping rule in terms of maximizing expected payoff?
b. What is the expected payoff following this optimal rule?
c. What amount in dollars (integer values only ) are you willing to pay for one session (i.e. playing as long as you wish, not exceeding the deck), using your strategy?

Source will be disclosed after the solution is published.

(In reply to re: some research (spoiler) by Jer)

Ummm... why $2 rather than the still-fair $2.62?

Edited on September 24, 2015, 6:40 pm

Edited on September 24, 2015, 6:42 pm

Posted by Charlie on 2015-09-24 18:35:16