Minying has just bought a single share of stock from DA Corporation for $50, and she is considering buying a put option for the stock, which would cost her an additional $10. A put option would allow...

Minying has just bought a single share of stock from DA Corporation for $50, and she is considering buying a put option for the stock, which would cost her an additional $10. A put option would allow her to sell the stock one year from now at the current price of $50. If she does not buy the option, then she would sell the share one year from now at its market price. Minying believes that the price of the share will go up to $ 100 with a probability of 0.6 and go down to $30 with a probability of 0.4. Minying follows the five Rules of Actional Thought and prefers more money to less. She follows the delta property for prospects up to $200, and she is indifferent between receiving $30 for sure and a deal with a .6 chance of getting $50 and a .4 chance of getting $10.