Answer:
the value is x is 8 and y is 7
212°F
147°F
23.2 min
1) Initial temperature for t=0
T(0)=68+144e^(0)=68+144=212°F
2) After 15 min
T(15)=68+144e^(-0.04*15)=68+144e^(-0.6)=147°F
3) 125°F -> t=?
125=68+144e^(-0.04t)
144e^(-0.04t)=125-68=57
e^(-0.04t)=57/144=0.4 you can apply ln on both sides:
-0.04t=ln(0.4) solving you get t=23.3 min
Answer:
I got 126.12 in my notes
Step-by-step explanation:
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.