Question: Q 2 . Underlying priced at 1 0 0 0 follows a uniform distribution with a MAD of 2 0 0 . ( 1 5

Q2. Underlying priced at 1000 follows a uniform distribution with a MAD of 200.(15 points)
Q2a. What is the probability of option expiring ITM for a 1100 PUT? (3 points)
Q2b. What is the average underlying price when PUT expires ITM? (3 points)
Q2c. What is the average PUT option payment conditional on that the PUT expires in the money? (3
points)(note: this is asking for option payment NOT average stock price when option expires ITM)
Q2d. How much should the PUT be priced at today based on Q2a and Q2c?(3 points)
Q2e. Out of the price in Q2d, how much of that is intrinsic value and how much is time value? (3
points)
 Q2. Underlying priced at 1000 follows a uniform distribution with a

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