Answer:
Step-by-step explanation:
Your answer would be B., because you would multiply
2.14 x 22.4 =
47.939
then you will subtract that by 42.9
47.939 - 42.9 =
5.026
I’d say the second one, the fourth one and the fifth one.
Hope it works :)
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.
32-x=0; with x equaling the amount descended or -32.
44.2%= 287
Let the total attempt = x
(287/x) ×100 = 44.2
287/x = 44.2/100
287/x = 0.442
x = 287/0.442
<h3>x= <u>649 </u></h3>
Hope this will help...