Given Events a and B with Probabilities P(A) = 0

question 90

Multiple Choice

Given events A and B with probabilities P(A) = 0.75 and P(B) = 0.15, are A and B mutually exclusive?

• A) cannot be determined
• B) no
• C) yes

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Definitions:

Out-Of-The-Money

A term used to describe an option contract that would not result in a profit if exercised at the current market level.

Convertible Bond

A type of bond that can be converted into a predetermined amount of the company's equity, usually at the option of the bondholder.

Callable Bond

is a type of bond that gives the issuer the right to redeem the bond before its maturity date, under specific conditions.