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The Following Price Quotations on WFM Were Taken from the Wall

question 33

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The following price quotations on WFM were taken from the Wall Street Journal.  Strike  Stock Price  Price  February 927/88587/8927/89041/8927/89515/8\begin{array} { c c c } & \text { Strike } & \\\text { Stock Price } & \text { Price } & \text { February } \\927 / 8 & 85 & 87 / 8 \\927 / 8 & 90 & 41 / 8 \\927 / 8 & 95 & 15 / 8 \\\hline\end{array} The premium on one WFM February 85 call contract is


Definitions:

Standard Deviation

A measure of the dispersion or variability within a set of numerical data, indicating how spread out the values are from the mean.

Tchebysheff's Theorem

A statistical rule stating that for any dataset, regardless of distribution, a certain minimum percentage of values must lie within a specified number of standard deviations from the mean.

Population Mean

A calculation of the central value among all data points in a population.

Sample Mean

The average of a set of numerical values taken from a sample.

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