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.
Answer:
See attachment
Step-by-step explanation:
You can obtain any two points on the graph of
and use it to draw its graph.
When x=0, 
So you plot (0,2)
When x=1, 
You again plot (1,-71).
With a straight edge you can now draw a straight line through the two points.
See attachment
Answer:
literally 1
Step-by-step explanation:
scooby ate my scooby snax
Ok so first we need to distribute so:
<span>=<span><span><span><span><span>(4)</span><span>(b)</span></span>+<span><span>(4)</span><span>(2)</span></span></span>+</span>−<span>3b
</span></span></span>=<span>4b+8+−3b
</span>So now that we've distrubuted that we are now going to Combine Like Terms:
<span>=<span><span><span>4b</span>+8</span>+<span>−<span>3b
</span></span></span></span><span>=<span><span>(<span><span>4b</span>+<span>−<span>3b</span></span></span>)</span>+<span>(8)
Finally your answer is:
</span></span></span><span>=<span>b+<span>8
I hope this helps you!</span></span></span>
Answer:
15 metal post
Step-by-step explanation:
all you have to do is divide 20 into 300