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If P(A) = 0

question 13

Multiple Choice

If P(A) = 0.30, P(B) = 0.40, and P(A If P(A) = 0.30, P(B) = 0.40, and P(A B) = 0.20, what is the value of P(A/B) ? A) 0.08 B) 0.12 C) 0.50 D) 0.67 B) = 0.20, what is the value of P(A/B) ?

Definitions:

Call Option

An agreement in finance that allows the purchaser the option, but not the duty, to acquire a stock, bond, commodity, or different asset at an agreed-upon price within a predetermined timeframe.

Risk-Free Interest Rate

The return on an investment that is guaranteed, with no risk of financial loss, typically associated with the most secure government bonds.

Strike Price

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

Put Options

Options contracts that give holders the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.