Answer:
cool
Step-by-step explanation:
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.
Lol I’m not sure but I’m logging in so it’s making me “answer”
Answer:
multiply input number by 4
Step-by-step explanation:
In the figure attached, the problem is shown.
We can see the following values:
input = 1, output = 4*1 = 4
input = 4, output = 4*4 = 16
input = 7, output = 4*7 = 28
Then, the missing numbers can be found multiply input number by 4
First we need to write the null and alternate hypothesis for this case.
Let x be the average number of text message sent. Then
Null hypothesis: x = 100
Alternate hypothesis: x > 100
The p value is 0.0853
If p value > significance level, then the null hypothesis is not rejected. If p value < significance level, then the null hypothesis is rejected.
If significance level is 10%(0.10), the p value will be less than 0.10 and we reject the null hypothesis and CAN conclude that:
The mean number of text messages sent yesterday was greater than 100.
If significance level is 5%(0.05), the p value will be greater than 0.05 and we cannot reject the null hypothesis and CANNOT conclude that:
The mean number of text messages sent yesterday was greater than 100.