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:
1.2°F
Step-by-step explanation:
Given that:
The drop in temperature in degree Fahrenheit over a period of 14 days = 16.8
The average daily rate of change in degwrr Fahrenheit ;
Total drop in temperature / number of days
= 16.8°F / 14
= 1.2°F
Hence, the average daily drop in temperature is 1.2°F
15.50+1.50x =26
1.50x = 10.50
x = 7
answer: he can ride 7 in one day
In this case you can say in one hour Austin earns $7.50.
I think its the first one