assuming conditions like 6 deck, H17, das, da2 no surrender and running count of 0 so house edge roughly .5%
you can either bet $5 or $7.5. you receive an extra 25 cents when you get a blackjack if you bet $7.5.
probability of blackjack = 1 in 20.7 or 4.8%
so the value of an extra 25 cents, 1 in 20 times is going to be around 1 cent. (1.2 cents)
so the normal expected loss would be 7.5 * .5% or 3.75 cents per hand
so your expected loss is actually 2.5 cents per hand, when accounting for the probability of a blackjack and the 1.66:1 payout.
This is the same expected loss for $5 @ .5%.
So you are indifferent between either bet.
you can either bet $5 or $7.5. you receive an extra 25 cents when you get a blackjack if you bet $7.5.
probability of blackjack = 1 in 20.7 or 4.8%
so the value of an extra 25 cents, 1 in 20 times is going to be around 1 cent. (1.2 cents)
so the normal expected loss would be 7.5 * .5% or 3.75 cents per hand
so your expected loss is actually 2.5 cents per hand, when accounting for the probability of a blackjack and the 1.66:1 payout.
This is the same expected loss for $5 @ .5%.
So you are indifferent between either bet.