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.
16 / 4 + 12 ___ 4 + 24/2
4 + 12 ___ 4 + 12
16 __ 16
u need an equal sign because 16 = 16
Answer:
60
Step-by-step explanation:
Given: 60% out of 100
Expressed mathematically:
= (60/100) x 100
= 60
Answer:
Check the explanation
Step-by-step explanation:
From the given differences of SAT scores
find the mean and standard deviation of difference.
Kindly check the attached image below to see the step by step explanation to the question above.
Answer:
See explanation below.
Step-by-step explanation:
Note that in △RST and △UVW
- m∠T=180°-m∠R-m∠S;
- m∠W=180°-m∠U-m∠V.
Since ∠R≅∠U and ∠S≅∠V, then ∠T≅∠W.
In ΔRST and ΔUVW:
- ∠S≅∠V (given);
- ∠T≅∠W (proved);
- ST≅VW (given).
ASA theorem that states that if two angles and the included side of one triangle are congruent to the corresponding parts of another triangle, then the triangles are congruent.
By ASA theorem ΔRST≅ΔUVW.
