Hugh Buys $8000 Worth of Stock in an Electronics Company

question 1

Multiple Choice

Hugh buys $8000 worth of stock in an electronics company which he hopes to sell afterward at a profit.The company is developing a new laptop computer and a new desktop computer.If it releases both computers before its competitor,the value of Hugh's stock will jump to $22,000.If it releases one of the computers before its competitor,the value of Hugh's stock will jump to $16,000.If it fails to release either computer before its competitor,Hugh's stock will be worth only $5000.Hugh believes that there is a 70% chance that the company will release the laptop before its competitor and a 60% chance that the company will release the desktop before its competitor.Find Hugh's expected profit.Assume that the development of the laptop and the development of the desktop are independent events.

• A)$9200
• B)$17,200
• C)$12,200
• D)$15,920
• E)$11,300.00

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Definitions:

Necessaries

Essential items or services required for an individual's basic needs and well-being, often related to contracts with minors.

Parent or Guardian Supplies

Items or provisions supplied by a parent or guardian for the care, support, or benefit of their ward or child.

Unconscionability

A doctrine in contract law that describes terms that are so extremely unjust or overwhelmingly one-sided in favor of the party who has superior bargaining power.

Equitable Remedy

A remedy provided by courts in cases where monetary damages are insufficient to resolve a legal dispute, involving actions like specific performance or injunction.