Question: Uni-assignment. Does anybody know how to solve this one? Thank you A new tech company has entered the market and is selling its shares. As

Uni-assignment. Does anybody know how to solve this one? Thank you

Uni-assignment. Does anybody know how to solve this one? Thank you A

A new tech company has entered the market and is selling its shares. As far as you can tell, this is the probability distribution of the possible share values one year from now. Given this information, do you want to buy a share at a price of 40 ? (Assume you are risk neutral and do not discount the future.) A new tech company has entered the market and is selling its shares. As far as you can tell, this is the probability distribution of the possible share values one year from now. Given this information, do you want to buy a share at a price of 40 ? (Assume you are risk neutral and do not discount the future.)

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