Mathematics
Mathematics, 25.06.2020 05:01, coolkitty35

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. Required:
a. Create a valid probability table.
b. How much should the trader expect to gain or lose?
c. Should the trader buy the stock? Explain.

answer
Answers: 2

Other questions on the subject: Mathematics

image
Mathematics, 21.06.2019 19:00, vince022503
At $1.32 million, they closed last month percent above what they paid in 2007." how much did they pay in 2007?
Answers: 1
image
Mathematics, 21.06.2019 20:00, brittanybyers122
Which type of graph would allow us to compare the median number of teeth for mammals and reptiles easily
Answers: 2
image
Mathematics, 22.06.2019 00:00, seonna
You are looking for your first credit card. you plan to use this credit card only for emergencies and to pay the credit card balance in full each month. which credit card feature is most important? a. no annual fee b. low apr c. generous rewards program d. no balance transfer fee select the best answer from the choices provided
Answers: 2
image
Mathematics, 22.06.2019 00:30, rayden62
Which image (a’ b’ c’ d’) of abcd cannot he produced using only reflections ?
Answers: 1
Do you know the correct answer?
An option to buy a stock is priced at $150. If the stock closes above 30 next Thursday, the option w...

Questions in other subjects:

Konu
Mathematics, 06.04.2021 17:00
Konu
Mathematics, 06.04.2021 17:00