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.
Answer:
^^1 week and 5 days
Explanation:
If she has $85 now, and gains $10 per week, by the next week and 5 days, she should have her goal of $205. Hope it helps!
Well. If you get 29% of 5 cars that is 145%. This was a little confusing but I am defiantly sure it is correct. I like to use simpler numbers to see if I am doing the work right. So I said if he has a 50 % likely hood to find a car that was expired and had 1 car. It would be 50 percent. Now if he had 2nt got it the first time it would be a 100 % chance to find the car expired . Hope I didn’t co fuse you more
The equation in slope intercept form would be: y= 1/26x - 2
Divide the annual salary by 12 and you'll find the monthly salary
month salary = annual salary/12
month salary = 52,750/12
month salary = 4,395.83
Her monthly salary is $4,395.83
