Step-by-step explanation:
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IF 24 IS ADDED TO A NUMBER, IT WILL BE 3 TIMES AS LARGE AS IT WAS ORIGINALLY. FIND THE NUMBER
1 answer:
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Answer:
g(-3) = 23
Step-by-step explanation:
This question is telling us that x = -3. Knowing this, we can plug x into the equation and solve to find g(-3).
Square -3 to get 9
Multiply 9 by 3 to get 27
Subtract 4 from 27 to get 23
Thus, g(-3) is equal to 23.
I hope this helps! Good luck!
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.