I don't quite understand the 20% part.

Supposing the prices on the animal were $1.70 , $1.85 , $1.80
Then the lowest Price would be $1.70 - yes?
Times it by 1.2 makes it $2.04 is that right so far?

And now I go and allow others to bet it against me and I give them any Price up to , and including $2.04 , is that it?

To me I think I may have messed it up some how.