Is a Hand*** between friends a bad thing?

First off, I am NOT in a relationship. My BF of 8 years and I broke up and for the last year I have been enjoying(sometimes) single life. So this guy, who I have known forever, never been "with" him or anything. We were drinking and he said he would totally give me a tonne of cash for a hand***. I was like PARDON???! How much exactly??? He says, oh at least a few hundred bucks! SERIOUSLY?? Guys do this?? He is completley serious too! I know, some are like "oh, you'd be a hooker etc etc." But really he is a GOOD friend. If I did it, is it really that bad?! We are friends and quite honestly if he is crazy enough to paying that much is it that bad? What would you do, as in GIRLS?