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)
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$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.
Diameter of the circle is BD as shown, as indicated and passed through center where BD passes, triangle ABD is a right triangle with angle ABD as the right angle. It means ADB and ABD are complementary which means
AB = 140 degree
AD=40 degree
Answer:
c?
Step-by-step explanation:
3xy + 10xy - 5x + 2x - 2yx
Add 3xy to 10xy
13xy - 5x + 2x - 2yx
Add -5x to 2x
Final Answer: B.) 13xy -3x - 2yx
Answer:
Part 1) The equation tells us that Terry started at an elevation of 2,600 ft
Part 2) The elevation is decreasing by 50 feet each second
Step-by-step explanation:
we have
where
E(t) is Terry's elevation in feet
t is the time in seconds
Part 1) Find the E intercept of the equation
The E-intercept is the value of E when the value of t is equal to zero
so
For t=0
substitute
therefore
The equation tells us that Terry started at an elevation of 2,600 ft
Part 2) Find the slope of the equation
we have
This is the equation of the line into slope intercept form
The slope m is equal to
The slope is negative, because is decreasing
therefore
The elevation is decreasing by 50 feet each second
