This contingency is made explicit by considering other potential host behaviors as described in the Wikipedia entry:
• Monty from Hell
• Angelic Monty
• Ignorant Monty
• Monty only offers sometimes
One good way to see that the result is correct is to extend the problem to a deck of cards. Suppose you are to choose among 52 cards, hoping to get the Ace of Spades.
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You choose one card, which remains hidden, and now I turn over 50 cards, none of which turns out to be the Ace of Spades. It is pretty clear the probability that your first choice was correct is 1 in 52 and now the odds for the one card remaining are obviously much improved.