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.
I dont know if im right, but Ill take a shot at it. in the table 0 is 1, 1 is 5, 2 is 21, and 3 is 95. Hope this helps..
Solution
Problem 6
For this case we can do this:
12, 16,__, 14, 8, 7
We can solve for x like this:


Problem 7
F
Answer:
Step-by-step explanation:
Let the width be w centimeters.
Then the length = w + 7.
The area A is found from the length multiplied by the width.
330 = w(w + 7) = w^2 + 7w.
Now we can rearrange this equation to form a quadratic, as follows:
The factorization of the quadratic is:
(w + 22)(w - 15) = 0
Therefore we find that:
width = 15 centimeters
length = 22 centimeters