Find the Value of a Normal Random Variable

question 40

Multiple Choice

Find the Value of a Normal Random Variable
-A physical fitness association is including the mile run in its secondary-school fitness test. The time for this event for boys in secondary school is known to possess a normal distribution with a mean of 440 seconds and a standard deviation of 60 seconds. Between what times do we expect most (approximately 95%) of the boys to run the mile

• A) between 322.4 and 557.6 sec
• B) between 341.3 and 538.736 sec
• C) between 345 and 535 sec
• D) between 0 and 538.736 sec

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Definitions:

Strike Price

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

Option Contract

A financial contract granting the buyer the right, but not the obligation, to buy or sell an asset at a set price on or before a certain date.

Conversion Warrant

A conversion warrant is a financial derivative that gives the holder the right, but not the obligation, to convert the warrant into the underlying company's stock at a specific price before expiration.

Strike Price

The set price at which the holder of an options contract can buy (call option) or sell (put option) the underlying asset.