John has two job offers when he graduates from college. John views the offers as identical, except for the salary terms. The first offer is at a fixed annual salary of $50,000. The second offer is at a fixed salary of $20,000 plus a possible bonus of $60,000. John believes that he has a 50-50 chance of earning the bonus. If John takes the offer that maximizes his expected utility and is risk-averse, which job offer will he choose?
a) The first offer with a fixed salary of $50,000.
b) The second offer with a fixed salary of $20,000 and a possible bonus of $60,000.
c) The second offer only if he's confident in earning the bonus.
d) The first offer only if he's confident in earning the bonus.