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:
=-110
Step-by-step explanation:
:)
The expression for five groups of a number added to seventeen.
Let the number be X
Five groups of the number will be 5X
The required expression will be
5(X) +17
Answer:
28 miles
Step-by-step explanation:
Let w stand for the number of miles Derrick runs each week. Then after 4 weeks of training, he wants the total mileage to be 100 miles.
16 + 3w = 100
3w = 84 . . . . . . . subtract 16
w = 28 . . . . . . . . divide by 3
Derrick will run 28 miles each week to achieve his training goal.