Use the at Least Once Rule to Find the Indicated

question 195

Multiple Choice

Use the at least once rule to find the indicated probability.
-Find the probability of at least one club when you draw cards from a standard deck 17 times; assume that you replace the card each time you draw , so there are always 52 cards to draw from.

• A)0.003
• B)0.744
• C)0.992
• D)0.008

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Definitions:

Time Value

The concept in finance that money available now is worth more than the same amount in the future due to its potential earning capacity.

In-The-Money

A term describing an options contract that has intrinsic value; for a call, when the underlying asset's price is above the strike price, and for a put, when it's below.

Put Option

A financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Stock Price

The current price at which a particular stock is bought or sold in the market.