Business, 14.02.2020 00:53 eduardoma2902

An investor buys an option on a stock that will return $150 profit if the stock goes up and lose $650 if it goes down. The investor estimates there is a 65% chance the stock will go up.
(a) What is the expected profit for this option? (Enter your answer to two decimal places.)

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An investor buys an option on a stock that will return $150 profit if the stock goes up and lose $65...