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.
Yes and rational numbers are numbers that can be written as a ratio of two integers
Answer:
y+o+u+t+u+b+e +biggie smalls
Step-by-step explanation:
Answer:
The correct option is A: 24%, 24%, 24%, 24%, 24%
Step-by-step explanation:
Since the overall probability of M&M's produced is stated as 24% and the packets are filled with different colored candies at random, the probability of blue colored candies in each packet cannot be ascertained individually.
Hope that answers the question, have a great day!
Answer: What was the question?
Step-by-step explanation: Was it when did I drink the most juice?