Question: The answer is not 0.00 Problem 7 Intro A new company is offering its shares for sale in an initial public offering (IPO) through an

The answer is not 0.00 Problem 7 Intro A new company

The answer is not 0.00

Problem 7 Intro A new company is offering its shares for sale in an initial public offering (IPO) through an auction. There is a 40% probability that the company will be very successful, in which case each share is worth $42. Otherwise, each share is worth $0. You are competing with professional investors such as hedge funds that know if the company will be successful or not. Part 1 | Attempt 3/3 for 6 pts. If you bid $16.8 per share, what is your expected return? | K+ decimals Submit

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