Answer:
324
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.
Answer:
72
Step-by-step explanation:
brainliest please
Answer:
DEF = 103
Step-by-step explanation:
brainlyist pls
Answer:
6.1
Step-by-step explanation:
Draw a picture of an equilateral triangle. Cut the triangle in half, so that you get two 30-60-90 triangles. The area of these smaller triangles is 8 square inches.
The short leg of these triangles (the base) is half the side length: ½ s.
According to properties of 30-60-90 triangles, the long leg (the height) is √3 times the short leg: ½ s√3.
Area of a triangle is half the base times the height:
A = ½bh
8 = ½ (½ s) (½ s√3)
8 = ⅛ s²√3
64 = s²√3
s² = 64/√3
s = √(64/√3)
s ≈ 6.1