Please help well mark brain please
2 answers:
You might be interested in
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.
The image is missing, so i have attached it.
Answer:
x = 56.44°
Step-by-step explanation:
From the attached image, we can see that this is a right angle triangle which has opposite, adjacent and hypotenuse as sides. Since we want to find the angle x, thus, we can make use of trigonometric ratios.
From the attached image, the side opposite to angle x is 10ft and the hypotenuse is 12 ft.
From trigonometric ratios, we know that, sin x = opposite/hypotenuse
So, sin x = 10/12
x = sin^(-1) (10/12)
x = sin^(-1) 0.8333
x = 56.44°
