In a Specific Wager,Pat Is Paid $5

question 5

Multiple Choice

In a specific wager,Pat is paid $5.00 if the price of ABC Corp.is above $85.00.Currently,ABC Corp.price is $75.00,σ = 0.25,r = 0.04,div = 0 and the wager lasts 6 months.Pat receives nothing if the price is below $85.00.What is the value of her wager?

• A) $1.20
• B) $2.20
• C) $3.20
• D) $4.20

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Definitions:

Difference

What remains after one quantity is taken away from another.

Expression

In mathematics, an expression is a combination of symbols that represent a value or the relationship between values.

X

Often used to denote an independent variable or an unknown value in equations and functions.

Polynomial

An algebraic expression consisting of terms in the form of ax^n where a is the coefficient, x is the variable, and n is a non-negative integer.