Find the standard deviation of the day traders option value in Exercise 4. In Exercise 4 A

Question:

Find the standard deviation of the day trader’s option value in Exercise 4.

In Exercise 4

A day trader buys an option on a stock that will return $100 profit if the stock goes up today and lose $400 if it goes down. If the trader thinks there’s a 75% chance that the stock will go up

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Business Statistics

ISBN: 9780133899122

3rd Canadian Edition

Authors: Norean D. Sharpe, Richard D. De Veaux, Paul F. Velleman, David Wright

See More Books

Question Posted: Jun 25, 2019 09:01 AM

The 2000 Census showed that 26% of all firms in the United States are owned by women. Youre phoning local businesses, assuming that the national percentage is true in your area. You wonder how many...
Best known for its testing program, ACT Inc. also compiles data on a variety of issues in education. In 2004 the company reported that the national college freshman-to-sophomore retention rate held...
Back schedule the following shop order. All times are given in days. Move time between operations is 1 day, and wait time is 1 day. Due date is day 150. Assume orders start at the beginning of a day...
Modify Index to make a program IndexByKeyword that takes a file name from the command line and makes an index from standard input using only the keywords in that file. Note: Using the same file for...
Give the structure of a hydrocarbon that has six carbon atoms and a. Three vinylic hydrogens and two allylic hydrogens. b. Three vinylic hydrogens and one allylic hydrogen. c. Three vinylic hydrogens...
Each year, Canadas Top 100 rates the best companies to work for. Visit the Canadas Top 100 website and review the most recent list. What criteria did Canadas Top 100 use when building this list? What...
Plaintiff purchased stain and paint from defendant that, upon application, presented significant issues: discoloration and cracking. These issues became apparent 30 days after receipt of the...
Frieden Companys contribution format income statement for the most recent month is given below: Sales (40,000 units) . . . . . . . . . . . $800,000 Variable expenses . . . . . . . . . . . . 560,000...
Problem 1: JIT Setup Cost and Time Suppose that Roger, a production manager, is trying to run JIT. The product Annual Demand is 300,000 units, with 250 working days in a year, which means daily...
The Sarbanes-Oxley Act mandates that the audit committee of the board of directors of public companies be directly responsible for the appointment, compensations, and oversight of the external...
Find the standard deviation of the book purchases in Exercise 3. In Exercise 3 Suppose that the probabilities of a customer purchasing zero, one, or two books at a bookstore are 0.2, 0.4, and 0.4,...
Canadas annual exports to India are $2.8 billion on average with a standard deviation of $0.35 billion. Canadas annual imports from India are $3.1 billion on average with a standard deviation of...
The tainter gate section shown in Figure P2.6.5 has a cylindrical surface with a 12-m radius; it is supported by a structural frame hinged at 0. The gate is 10 m long (in the direction perpendicular...
Team selling is ideally suited to organizations that sell complex and/or customized products and services. O a true O b. false
Explain how and what kind of magnetic field is generated. Explain the application of the Lorentz force. Explain what force counteracts the Lorentz force?
Which among the given is a process to identify and eliminate product and service features that add little or no value to the product? Total Quality Management Six Sigma Value Analysis Total Cost of...
Which one these two is one of the most important degrees of freedom in production control? lot size setup tme
Which of these generations has a significant influence on the technology purchases of their parents and caregivers? OA. Millennials B. Baby boomers C. Generation Alpha OD. Generation X O E....
Mulliner Company showed the following information for the year: Standard variable overhead rate (SVOR) per direct labor hour................$3.50 Standard hours (SH) allowed per...
Element compound homogeneous mixture (heterogeneous mixture) 4) A piece of gold has a mass of 49.75 g. What should the volume be if it is pure gold? Gold has a density of 19.3 g/cm (3 points) D=m/v...
Complete the following ANOVAtable. Source of Variance SS f MS F Treatment Error Total 249.61 19 317.80 25
You are asked to analyze a completely randomized design that has six treatment levels and a total of 42 measurements. Complete the following table, which contains some information from thestudy....
Compute a one-way ANOVA of the following data. Let = .01. Use the Tukey-Kramer procedure to conduct multiple comparisons for themeans. Treatment 12 17 16 13 10 15 14 18 10 10 10
In October 20X5, Pollock Company exchanged a used packaging machine having a book value of $240,000 for a new machine and paid a cash difference of $30,000. The market value of the used packaging...
Project managers should track the details of their projects to be transparent and manage risks as they arise. What is another benefit of tracking in project management?
During 2020, Nike disposed of a machine that had been acquired on January 1, 2014 for a purchase price of $20 million. The machine was being depreciated using the straight-line method, a $4 million...

Find the standard deviation of the day traders option value in Exercise 4. In Exercise 4 A

Question:

Step by Step Answer:

SDX100...View the full answer

Business Statistics

Students also viewed these Mathematics questions