A manager believes there is a 10 percent chance their firm will have to pay $1,000,000 and a 90 percent chance they will be found innocent and pay nothing except the legal fees of $200,000. If the manager chooses to not settle for $300,000 and to enter the litigation instead, which of the following is true?

A) The manager is a risk lover.
B) The manager is risk averse.
C) The manager is risk neutral.
D) The manager is risk intolerant.

A) The manager is a risk lover.