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
![= \sum x.P(X=x)\\\\ = 1000 * 0.2 + 200 * 0.5 + 0 = \$ 300](https://tex.z-dn.net/?f=%3D%20%5Csum%20x.P%28X%3Dx%29%5C%5C%5C%5C%20%3D%201000%20%2A%200.2%20%2B%20200%20%2A%200.5%20%2B%200%20%3D%20%5C%24%20300)
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:
20° and 90°
Step-by-step explanation:
Let 2x = measure of 1st angle
then 9x = measure of 2nd angle
The sum of the measures of the angles of a quad is 360
200 + 50 + 2x + 9x = 360
250 + 11x = 360
11x = 110
x = 10
2x = 20°
9x = 90°
Answer:
4
Step-by-step explanation:
Because i divided 4 2/3 by 22 1/6 = 4.75 and for full sheets it would be 4
Hope This Helped
Hope this helps! Mark brainly please!
<em>Answer,</em>
<em><u>S = -16</u></em>
<em>Explanation,</em>
<em><u>Step 1: Simplify both sides of the equation.</u></em>
<em>13 + 11s = − 15 + 8s − 20</em>
<em>13 + 11s = − 15 + 8s + − 20</em>
<em>11s + 13 = (8s) + (</em><em><u>− 15</u></em><em> + </em><em><u>− 20</u></em><em>) </em><em>(Combine Like Terms)</em>
<em>11s + 13 = 8s + − 35</em>
<em>11s + 13 = 8s − 35</em>
<em><u>Step 2: Subtract 8s from both sides.</u></em>
<em>11s + 13 − 8s = 8s − 35 − 8s</em>
<em>3s + 13 = − 35</em>
<em>Step 3: Subtract 13 from both sides.</em>
<em>3s + 13 − 13 = − 35 − 13</em>
<em>3s = − 48</em>
<em><u>Step 4: Divide both sides by 3.</u></em>
<em>3s/3 = −48/3</em>
<em>s = -16</em>
<u><em>Hope this helps :-)</em></u>