Assume the Black-Scholes framework for a stock. You are given: i) The current stock price is 40 ii) The stock pays no dividends iii) The expected rate of appreciation is 16% iv) The stock' s volatility is 30% v) The Black-Scholes price of a 6-month 42-strike European call on the stock is 3.22 vi) The continuously compounded risk-free rate is 8% You just bought a 6-month straddle which pays the absolute difference between the stock price after 6 months and 42. Calculate the probability of having a positive profit after 6 months. Possible Answers A Less than 0.35 B At least 0.35 but less than 0.40 c At least 0.40 but less than 0.45 D At least 0.45 but less than 0.50 E At least 0.50

Answers

Answer 1

Answer:

Step-by-step explanation:

Assume the Black-Scholes framework for a stock. You are given: i) The current stock price is 40 ii) The stock pays no dividends iii) The expected rate of appreciation is 16% iv) The stock' s volatility is 30% v) The Black-Scholes price of a 6-month 42-strike European call on the stock is 3.22 vi) The continuously compounded risk-free rate is 8% You just bought a 6-month straddle which pays the absolute difference between the stock price after 6 months and 42. Calculate the probability of having a positive profit after 6 months. Possible Answers A Less than 0.35 B At least 0.35 but less than 0.40 c At least 0.40 but less than 0.45 D At least 0.45 but less than 0.50 E At least 0.50


Related Questions

1. Find the mass of each of these objects on the earth.
(i) A girl of weight 18.6 N.
(ii) A lorry of weight 2205 N.
2.Find the magnitude and direction of the vectors :
a) s =
(-3)
b)t = ()
c) 2s + t

Answers

Answer:

hdhdujejeuhedudhdgdgdf egg ejeh

The first equation from the previous system of equations is graphed. Graph the second equation to find the solution of the system of equations.
y = −2x + 4,
y = − 1/3x − 1
What is the solution to the system?

Answers

The system of equations y = 2x + 4 when graphed have a solution that y = − (1/3)x − 1 is (3, - 2)

A straight line's general equation is -

y = (m)x + c

where -

The slope of the line, [m], indicates the unit rate at which [y] changes in relation to [x].

The y-intercept, or the place where the graph crosses the [y] axis, is represented by [c].

A straight line's equation can also be expressed as -

Ax + By + C = 0

By = - Ax - C

y = \((\frac{A}{B} - \frac{B}{C})x - \frac{A}{C}\)

The set of equations is as follows:

y = − 2x + 4

AND

y = − \((\frac{1}{3} )\)x − 1

Draw the graphs for these two equations. The answer to this system of equations would be near the intersection. Please see the following graph. These lines come together at (3, - 2)

As a result, y = 2x + 4 and is the system of equations that has been solved.

y = − \((\frac{1}{3} )\)x − 1 is (3, - 2)

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Anna has a loyalty card good for a 7% discount at her local grocery store. What number should she multiply the prices on the tags by to find the price she would have to pay, before tax, in one step?

Answers

Anna should multiply the prices on the tags by 0.93 to find the price she would have to pay before tax in one step.

Given that Anna has a loyalty card good for a 7% discount at her local grocery store.

We have to find the number should she multiply the prices on the tags by to find the price she would have to pay, before tax

Anna should multiply the prices on the tags by 0.93 (which is 1 minus the 7% discount) to find the price she would have to pay before tax in one step.

For example, if an item costs $10 before the discount, Anna would pay $10 x 0.93 = $9.30 after the discount.

Hence, Anna should multiply the prices on the tags by 0.93 to find the price she would have to pay before tax in one step.

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Jonelle spends $22.50 at a library book sale.she spends $4.50 on a paperback books and buys 6 hardcover books of equal value.

Answers

Answer: 3

Step-by-step explanation:

Subtract the cost of paperback books from Jonelle's total amount.

(22.50 - 4.50)

Then, you'll get ($18).

Divide (18) by the number of hardcover books.

(18/6)

Finally, you'll get $3 for the cost of each hardcover book.

Assuming a random sample from a large population, for which of the following null hypotheses and sample sizes n is the large-sample z test appropriate:
(a) H0: p = 0.1, n = 35
appropriate
not appropriate

Answers

The large-sample z test is appropriate for the null hypothesis H0: p = 0.1 and sample size n = 35.

For the null hypothesis H0: p = 0.1 and sample size n = 35, the large-sample z test is appropriate.

In more detail, the large-sample z test is used when the sample size is sufficiently large, typically with a sample size greater than or equal to 30. The large-sample approximation assumes that the sampling distribution of the sample proportion follows a normal distribution.

In this case, the null hypothesis states that the population proportion, denoted as p, is equal to 0.1. With a sample size of 35, which is considered large, the conditions required for the large-sample z test are met, making it an appropriate test to use for hypothesis testing in this scenario.

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Zach just got a grade of 93 on a report. However, because he turned it in late, his teacher is going to deduct 15 points. What will Zach's final score on the report be?​

Answers

Answer:

Your Answer is 78

Step-by-step explanation:

Answer: 93-15= 78

Step-by-step explanation:

Two step equation help me pls step by step

The questions 36 and 37

Two step equation help me pls step by stepThe questions 36 and 37

Answers

Answer:

Step-by-step explanation:

Two step equation help me pls step by stepThe questions 36 and 37

SOLVING

================================================================

Question 36

6=-2(7-c)

Use distribution to multiply -2 by parenthesis

6=-14+2c

Add to both sides 14

20=2c

Divide 2 into both sides

10=c

Question 37

5(h-4)=8

Use distribution to multiply 5 by the parenthesis

5h-20=8

Add to both sides 20

5h=28

Divide 5 into both sides

\(h=\frac{28}{5}\)

Learn more;work harder

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==============================================================

Please answer and show Work

Please answer and show Work

Answers

1.1

1.

7/20 = 0.35

2.

1.(27) = (127 - 1)/(100 - 1) = 126/99 = 14/11

3.

1 7/8 = 1.875

4.

x² = 81 ⇒ x = √81 = ± 9

5.

x³ = 343 ⇒ x = ∛343 = 7

6.

x² = 1/100 ⇒ x = √1/100 = ± 1/10 = ± 0.1

7.

x² = 200 ⇒ x = √200 = 10√2 ≈ 14.14 ft1.2

8.

121/√121 = √121 = ± 11  ⇒ Integer, Rational number, Real number

9.

π/2 ⇒ irrational number, Real number

10.

'All integers are rational numbers' ⇒ TRUE as each can be shown as p/q1.3

11.

√8 + 3 < √9 + 3 = 3 + 3 = 6 ( < ) 8 + √3

12.

√5 + 11 > √4 + 11 = 2 + 11 = 13 ( > ) 5 + √11 < 5 + √16 = 5 + 4 = 9

13.

√99  ≈ 9.94, π² ≈ 9.869 , 9.(8) ≈ 9.888 π² < 9.(8) < √99

14.

√1/25 = 1/5 = 0.2, 1/4 = 0.25. 0.(2) = 0.222√1/25 < 0.(2) < 1/4


The sum of two numbers is 55. The smaller number is 15 less than the larger number. What are the numbers?


Answers

Answer:

a=35

b=20

Step-by-step explanation:

a+b =55

a=b+15

b+15 +b =55

2b=55 - 15

2b=40

b=40 :2

b=20 (the smallest number)

a=20 +15 =35 (the largest number)

Step-by-step explanation:

55=x+15

-15     -15

40=x

Hope it helps!

Adi bought a bag for $25 and sold it at a loss of 10%. Find the selling price of the bag.​

Answers

Answer:

The selling price of the bag is $22.5

Step-by-step explanation:

Buying Price = $25,

Selling Price = ?

Since they sold it at a loss of 10%,

So, they sold it for a price 10% less than the buying price,

or at 90% or 0.9 of the buying price,

so,

Selling Price = (0.9)(25) = $22.5

In a polynomial equation, the sum of the multiplicities of the roots always add up to.. the degree of the polynomial. the leading coefficient of the polynomial. the constant coefficient of the polynomial the sum of the coefficients of the polynomial.

Answers

Answer:

the degree of the polynomial

Step-by-step explanation:

Given

Polynomial equation

Required

What does the sum of the multiplicities add up to

To answer this question, I'll make use of the following polynomial.

\(p(x) = x^3 - 7x^2 + 15x - 9\)

When factorized, the polynomial is:

\(p(x) = (x - 1)(x - 3)(x-3)\)

\(p(x) = (x - 1)(x - 3)^2\)

x-1 can be expressed as \((x - 1)^1\)

So, we have:

\(p(x) = (x - 1)^1(x - 3)^2\)

The sum of multiplicity (M) of the equation is 3.

This is so because

\(x - 1\) occurred one time in \(p(x) = (x - 1)(x - 3)^2\)

\(x - 3\) occurred two times in \(p(x) = (x - 1)(x - 3)^2\)

\(Sum= 1 + 2\)

\(Sum= 3\)

The degree of \(p(x) = x^3 - 7x^2 + 15x - 9\) or \(p(x) = (x - 1)^1(x - 3)^2\) is 3.

This implies that:

\(Sum = Degree = 3\)

Hence: Option (a) answers the question

The perimeter of an isosceles triangle is 36 centimeters and two sides of the triangle are in the ratio $2:5.$ What is the number of centimeters in the length of the longest side

Answers

since isosceles has 2 equal sides we can add two to the shorter side

so now we multiply by 4

8 for short sides each

20 for long side

The longest side of the isosceles triangle is 20 units.


What is an isosceles triangle?

An isosceles triangle in geometry is a triangle with two equal-length sides. It can be specified as having exactly two equal-length sides or at least two equal-length sides, with the latter definition including the equilateral triangle as an exception.

Given that the perimeter of an isosceles triangle is 36 centimetres and two sides of the triangle are in the ratio $2:5.$.

The length of the longest side will be calculated as;-

2S + B = 36

S / B = 2 / 5
S = ( 2B ) / 5

2 x ( 2B ) / 5 + B = 36

4B + 5B = 180

9B = 180

B = 20 units

The measure of the other side is,

S = 2B / 5

S = ( 2 x 20 ) / 5 = 8 units

Hence, the length of the longest side is 20 units.

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maya wants to be able to take a series of four triangles and place them in a mobile design where all four triangles are attached at one point and are balanced so that they stay horizontal. Which statement best describes where she should attach each triangle?

A) Where the medians intersect
B) where the altitudes intersect
C) where perpendicular bisectors intersect
D) at any vortex

Answers

The correct statement is (D) at every vertex.

What is a vertex?

The vertex of a triangle is the intersection of two sides. Vertices is the term used to describe objects with several vertices.

The ability to write an equation for a line given two points is a prerequisite. The intersection of two lines will then need to be solved, which will give you the intersection's coordinates.

One of the triangle's vertices is at this intersection of two lines.

So, we know that 4 triangles are joined to make them horizontal.

This can be done when the vertex is attached to all 4 triangles.

Then, statement (D) will be a correct statement.

Therefore, the correct statement is (D) at every vertex.

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Which of the graphs below would result if you made the leading term of the
following function negative?
F(x) = x^3 + 3x^2


Which of the graphs below would result if you made the leading term of thefollowing function negative?F(x)

Answers

Answer:

D

Step-by-step explanation:

Cubic equation: an algebraic equation of degree three and of the form

\(ax^3 + bx^2 + cx + d = 0\), where a, b and c are the coefficients and d is the constant.

If the leading coefficient \(a\) of a cubic equation is positive, the curve begins in quadrant III and ends in quadrant I

If the leading coefficient \(a\) of a cubic equation is negative, the curve begins in quadrant II and ends in quadrant IV

For information

Graph A = cubic function with positive leading coefficient

Graph B = quadratic function with positive leading coefficient

Graph C = quadratic function with negative leading coefficient

Graph D = cubic function with negative leading coefficient

Therefore, if you made the leading coefficient of \(f(x)=x^3+3x^2\) negative, it would be graph D.

Answer:

D graph D

Step-by-step explanation:

On a cold day in November, the recorded low temperature was -10 degrees Celsius (ºC) in Pennsylvania. On the same day, the recorded low temperature was in 0ºC Michigan, -20ºC in Minnesota, and 16ºC in Florida. Which list shows the states in order from coldest to warmest?

Florida, Michigan, Pennsylvania, Minnesota

Michigan, Pennsylvania, Florida, Minnesota

Pennsylvania, Minnesota, Michigan, Florida

Minnesota, Pennsylvania, Michigan, Florida

Answers

Answer:

The last option:

Minnesota, Pennsylvania, Michigan, Florida

Step-by-step explanation:

Coldest to warmest:

-20°C, -10°C, 0°C, 16°C

Then the order is:

Minnesota, Pennsylvania, Michigan; Florida

The sum of 2 numbers is 38. The grarter number is 8 more than the other number find each number ise a aystem of linear equations to justify your answer

Answers

Answer:

x = 23 ; y = 15

Step-by-step explanation:

Given :

Let the numbers be : x and y

x + y = 38 - - (1)

x = y + 8 - - - (1)

Put x = y + 8 into (1)

y + 8 + y = 38

2y + 8 = 38

2y = 38 - 8

2y = 30

y = 30/2

y = 15

x = y + 8

x = 15 + 8

x = 23

¿Cuál número decimal corresponde a la fracción 1328?

Answers

Answer:

3

Step-by-step explanation:

What is the solution to the equation Negative (5 minus (a + 1)) = 9 minus (5 minus (2a minus 3))? a = –5 a = –3 a = 3 a = 5

Answers

Answer:

a = -5

Step-by-step explanation:

negative (5 minus (a + 1)) = 9 minus (5 minus (2a minus 3)) can be expressed mathematically as follows.

- (5 - (a + 1)) = 9 - (5 - (2a - 3))

using the principle of PEMDAS, all the parenthesis values are first solved

- (5 - a - 1) = 9 - (5 - 2a + 3)

-5 + a + 1 = 9 - 5 + 2a - 3

collect like terms

-5 + 1 - 9 + 5 + 3 = 2a - a

-5 = a Therefore,

a = -5

Answer:

-5

Step-by-step explanation:

En un examen de matemáticas por cada respuesta correcta se suman 7 puntos, y por cada incorrecta se pierden 9, si el examen tiene 10 preguntas, y se obtuvo una calificación de 6 puntos, ¿Cuántas preguntas correctas e incorrectas se obtuvieron? *



Si en el ejercicio anterior se obtuvieron -26 puntos en lugar de 6, ¿Cuántas preguntas correctas e incorrectas se obtuvieron? *

Answers

Answer:

iufiyutuiti7ti6ri6fu5eu5ru5s

Please help if you can! A photographer rented a booth at an art fair for $630. The photographer sold each photograph for $45 and made a total of $1,980 after paying for the booth. How many photographs did the photographer sell at the fair?

Answers

He needed to make a total of 1980 + 630 = $2610

$2610 / 45 = 58

Answer: 58

simplify sin 2 ( t ) cos 2 ( t ) sin 2 ( t ) sin2(t) cos2(t)sin2(t) to an expression involving a single trig function with no fractions.

Answers

The trigonometric function simplified as a single expression is cosec² t .

The given trigonometric function is  : \(\frac{sin^2t+cos^2t}{sin^2t}\)

We know from trigonometric identity : that sin²t +cos²t = 1

hence the given expression simplifies to 1 / sin²t

Again trigonometric ratios states that :

1 / sin t =  cosec t

∴ 1 / sin²t = cosec² t

Hence the trigonometric function is of the form cosec² t .

The right-angled triangle's angle and the ratios of its two side lengths are connected by the trigonometric functions, which are actual functions. They are also referred to as goniometric functions, circular functions, and angle functions .

The three trigonometric functions that are used in modern mathematics the most commonly are sine, cosine, and tangent. The less frequent cotangent, cosecant, and secant are their reciprocals.

Disclaimer: The complete question is :

simplify sin² ( t ) + cos ² ( t ) / sin ² ( t ) to an expression involving a single trig function with no fractions.

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:D please help mee☺️

:D please help mee

Answers

Answer:

115

Step-by-step explanation:

The angle of a straight line is 180°. so all you have to do is subtract 65 from 180 and get 115.

Answer:

<7=115 degrees

Step-by-step explanation:

Since <8 = 65 degrees, and <7 and <8 are straight angles, then 180-65 = 115

SOMONE HELP PLSSSS IM SO CONFUSED

35.95+7.75%

Answers

Answer:

43.7

Step-by-step explanation:

Explain to solve
3(×+4)-1=23

Answers

Answer:

x = 4

Step-by-step explanation:

3 ( x + 4 ) - 1 = 23

First solve the brackets.

3x + 12 - 1 = 23

3x + 11 = 23

Now take 11 to the other side n solve it.

3x = 23 - 11

3x = 12

Now divide both sides by  3.

3x/3 = 12/3

x = 4

Hope this helps you :-)

Let me know if you have any other questions :-)

Have a nice day !!!

Answer:

3(x+4)-1+1=23+1

add 1 to both sides

3(x+4)=24

divide both sides by 3

\(\frac{3(x+4)}{3} =\frac{24}{3}\)

x+4=8

x+4-4=8-4

subtract 4 from both sides

x=4

Step-by-step explanation:

(Chapter 14) If f(x,y) has two local maximal, then f must have a local minimum.TrueFalse

Answers

It is true that the existence of two local maxima does not guarantee the presence of a local minimum. It is possible for a function to have multiple local maxima and no local minimum.

For example, consider the function f(x,y) = x^4 - 4x^2 + y^2. This function has two local maxima at (2,0) and (-2,0), but no local minimum. Therefore, the statement "if f(x,y) has two local maximal, then f must have a local minimum" is false. The presence or absence of local maxima and minima depends on the behavior of the function in the immediate vicinity of a point, and cannot be determined solely based on the number of local maxima. It is possible for a function to have an infinite number of local maxima and minima, or none at all. Therefore, it is important to carefully analyze the behavior of a function in order to determine the presence or absence of local extrema.

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help please this is hardddddddd

help please this is hardddddddd

Answers

Answer:

#1: 4) D

#2: 1) 34.89 = 3 × C

#3: 4) 6y + 18

Step-by-step explanation:

#1

Using the distributive property:

3 × 5z = 15z

3 × -3 = -9

The correct expression is 15z - 9. Hence, D is the right option.

#2

You need to find the cost of each box.

3 × C = 34.89

34.89 ÷ 3 = 11.63

3 × 11.63 = 34.89

Hence, 1) is the right option.

#3

Using the distributive property:

6 × y = 6y

6 × 3 = 18

The expression is 6y + 18. Hence, 4) is the right option.

hope this helps!! p.s. i really need brainliest :)

Answer:

1. #4, D

2. #1, 34.89 = 3 x c

3. #4, 6y + 18

Step-by-step explanation:

1. Which pair of expression are equivalent (=)?

A.

10c + 20 = 5(5c + 4) <== distribute

10c + 20 = 25c + 20

This pair is not equivalent

B.

3(4e -  2) = 7e - 5 <== distribute

12e - 6 = 7e - 5

This pair is not equivalent

C.

4(4h + 6) = 16 + 24 <== distribute

16h + 24 = 16 + 24

This pair is not equivalent (look carefully, it's missing an h)

D.

15z - 9 = 3(5z - 3) <== distribute

15 - 9 = 15z - 3

This pair is equivalent

Therefore, the correct answer is D

2. Mr. James bought 3 boxes of pencils for $34.89. Each box of pencils costs the same. Which equaiton can be used to find the cost, c, of each box?

We know that 3 boxes of pecils cost $34.89, and c represents the cost of one box. If c represents the cost of one box and there are 3 boxes, it would be 3c or 3 x c.

Looking at the answer choices, #1 is the only option that represents that.

Therefore, the correct answer is 1) 34.89 = 3 x c

3. Aidan wrote an expression 6(y + 3). Which expression is equivalent to the one Aidan wrote?

6(y + 3) <== distribute

6y + 18

Therefore, the answer is 4) 6y + 18

Hope this helps!

We wish to know if we may conclude, at the 95% confidence level, that smokers, in general, have greater lung damage than do non-smokers.
Smokers: x-bar1= 17.5 n1 = 16 s1-squared = 4.4752 Non-Smokers: x-bar2= 12.4 n2 = 9 s2 squared = 4.8492

Answers

As the lower bound of the 95% confidence interval for the difference in lung damage is greater than 0 there is enough evidence that smokers, in general, have greater lung damage than do non-smokers.

How to obtain the confidence interval?

The difference between the sample means is given as follows:

17.5 - 12.4 = 5.1.

The standard error for each sample is given as follows:

\(s_1 = \sqrt{\frac{4.4752}{16}} = 0.5289\)\(s_2 = \sqrt{\frac{4.8492}{9}} = 0.7340\)

Then the standard error for the distribution of differences is given as follows:

\(s = \sqrt{0.5289^2 + 0.734^2}\)

s = 0.9047.

The critical value, using a t-distribution calculator, for a two-tailed 95% confidence interval, with 16 + 9 - 2 = 23 df, is t = 2.0687.

Then the lower bound of the interval is given as follows:

5.1 - 2.0687 x 0.9047 = 3.23.

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If the side opposite the 60 degree angle in a 30-60-90 degree is 12 centimetres, then what length of the side opposite the 30 degree angle?​

Answers

Answer:

4*\(\sqrt3\)

Step-by-step explanation:

Can someone please explain how to do this? Not just the answer, please.

Can someone please explain how to do this? Not just the answer, please.

Answers

Answer:

Row n ---> 27th term is 27.

Row T ---> 27th term is 80.

Step-by-step explanation:

To find the 27th term for the top row, row n, you will use this formula:

an = a1 + f × (n-1)

The first number = 1

The common difference (f) = 1

a27 = 1 + 1 × (27-1)

a27 = 1 + 27 - 1

a27 = 28 - 1

a27 = 27

So, the 27th term is 27.

We will do the same for the row T.

an = a1 + f × (n-1)

The first number = 2

The common difference (f) = 3

a27 = 2 + 3 × (27-1)

a27 = 2 + 81 - 3

a27 = 83 - 3

a27 = 80

So, the 27th term is 80.

The Mississippi River flows at a rate of 2 miles per hour. If Eduardo floats
down the river in a boat for 5 2/3 hours, how far will he travel.

Answers

Answer:

11 1/3 miles

Step-by-step explanation:

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