Solve the Problem. -When a Single Card Is Drawn from an Ordinary 52-Card

question 104

Multiple Choice

Solve the problem.
-When a single card is drawn from an ordinary 52-card deck, find the odds in favor of getting a red 2 or a black 3.

• A)1 : 11
• B)1 : 25
• C)2 : 25
• D)1 : 12

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Definitions:

Straight Debt

A fixed-income security such as a bond, which pays a fixed interest rate and has a fixed maturity date, without any additional options or features.

Conversion Value

The value of a convertible security if it were to be converted into other securities (usually common stock) at the current market price.

Common Stock

Equity without priority for dividends or in bankruptcy.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy an asset at a predetermined price within a specific time frame.