Juanita is making necklaces to give as presents. She plans to put 15 beads on each necklace. Beadsare sold in packages of 20. Wh
2 answers:
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Answer:
Step-by-step explanation:
An option to buy a stock is priced at $150. If the stock closes above 30 next Thursday, the option will be worth $1000. If it closes below 20, the option will be worth nothing, and if it closes between 20 and 30, the option will be worth $200. A trader thinks there is a 50% chance that the stock will close in the 20-30 range, a 20% chance that it will close above 30, and a 30% chance that it will fall below 20.
a) Let X represent the price of the option
<h3><u> x P(X=x) </u></h3>
$1000 20/100 = 0.2
$200 50/100 = 0.5
$0 30/100 = 0.3
b) Expected option price
Therefore expected gain = $300 - $150 = $150
c) The trader should buy the stock. Since there is an positive expected gain($150) in trading that stock option.
Answer:
9
Step-by-step explanation:
The table is given below
We can see that the table represents a linear function since by checking its slope.
Using:
- Points (-2,15) and (1,6)
- Points (1,6) and (2,3)
Therefore, the values represent a linear function.
A linear equation is of the form y=mx+b
Therefore:
y=-3x+b
Using the points (7,-12)
Therefore, the y-intercept of the function, represented by the table of values is 9.