Solve the Problem. -The Probability of Winning a Certain Lottery Is 1/66,857. for Is

question 2

Multiple Choice

Solve the problem.
-The probability of winning a certain lottery is 1/66,857. For people who play 618 times, find the mean number of wins.

• A)0.0016
• B)108.2
• C)0.000015
• D)0.0092

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Definitions:

Long Put

An options strategy where an investor purchases a put option, betting that the underlying asset's price will decline below the strike price before expiration.

Collar Strategy

An investment strategy that uses options to limit the range of possible returns, protecting against large losses but also capping large gains.

Exercise Price

The price at which an option holder can buy (call option) or sell (put option) the underlying asset or security.

Call Options

Call options are financial contracts that give the buyer the right, but not the obligation, to buy a specified amount of an underlying asset, at a set price, within a specified period.