QUESTION 4 The current price of a stock is $50. Suppose the following distribution describes the possible prices that the stock will be in 1 year: the probability the stock price will be 44 is 0, the...


QUESTION 4






  1. The current price of a stock is $50. Suppose the following distribution describes the possible prices that the stock will be in 1 year: the probability the stock price will be 44 is 0, the probability the stock price will be 0.09 is 0.15, the probability the stock price will be 60 is 0.36, otherwise the stock price will be 69. What is the expected value of the stock price in 1 year? (please express your answer using 2 decimal places)






Jun 02, 2022
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