Ten Little Monkeys Were Jumping on a Bed

question 66

Essay

Ten little monkeys were jumping on a bed. There is a 35% chance that one will fall off and bump his head. In the bedroom next door, five kangaroos were jumping on a bed. Being more adept at jumping, there is only a 20% that a kangaroo will fall off the bed.
-What are the chances that the kangaroos can jump two nights in a row with no one falling off the bed?

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Definitions:

Stock Options

Contracts that give the holder the right, but not the obligation, to buy or sell a stock at a set price within a specified period.

GAAP

Generally Accepted Accounting Principles; a collection of commonly-followed accounting rules and standards for financial reporting.

Grant Date

In the context of stock options, the grant date is the date on which an employee is given the right to exercise their options at a set price.

Common Stock

represents units of ownership in a corporation, giving shareholders voting rights and a share in the company’s profits through dividends.