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2 answers:
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Answer:
37 beads
Step-by-step explanation:
Given that:
Adel : Claire = 7 : 4
Let Adel be = A; &
Let Claire be = C
A: C = 7 : 4
7C = 4A
--- (1)
When Adel gave 68 beads to claire, we have:
C + 68 = 25:41
25(C + 68) = 41A
C + 68 =
--- (2)
Equating (1) and (2) together;
- 187 A = 175 × (-68)
-187 A = - 11900
A = - 11900/ -187
A ≅ 64
From;
C = 36.57
C ≅ 37 beads
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.