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:
distance from Houston to Galveston in kilometers will be: 80km
Step-by-step explanation:
Given
The distance from Houston to Galveston is about 50 miles.
i.e.
Kilometers in 1 Mile = 1.6 km
As the distance from Houston to Galveston is about 50 miles, so
The distance from Houston to Galveston in kilometers will be:
50(1.6) = 80 ∵ Kilometers in 1 Mile = 1.6 km
Therefore,
The distance from Houston to Galveston in kilometers will be: 80km
We know that, Amount in Compound interest is given by :
Given : Principal = $2000
Given : Annual yield is 5% and the interest is compounded quarterly
It means : Interest is compounded 4 times in a year
Substituting all the values in the formula, we get :
Answer:
Option (2).
Step-by-step explanation:
In the figure attached,
A, C and B are the points lying on a straight line.
2 lines EC and DC have been drawn by extending the lines from C to E and D respectively.
Ray CE is the angle bisector of ∠ACD.
That means CE divides ∠ACD in two equal parts.
m∠ACE = m∠DCE
Since m∠ACD = m∠ACE + m∠DCE
= 2(m∠ACE)
m∠ACE = 
Therefore, option (2) will be the answer.
