He should give $1,000 to Bud and nothing to Kelly. He should give Bud and Kelly each $500. He should give more than $500 to Bud and less than $500 to Kelly. He should give more than $500 to Kelly and less than $500 to Bud. Solution as the statement said that a fair division means giving equal amounts of cash to everyone therefore option 2 is correct i.e He should give Bud and Kelly each $500. .