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An option to buy a stock is priced at $ 3 0 0 . If the stock closes above 3 0 on May 1 5
An option to buy a stock is priced at $ If the stock closes above on May the option will be worth $ If it closes below the option will be worth nothing, and if it closes between and inclusively the option will be worth $ A trader thinks there is a chance that the stock will close in the range, a chance that it will close above and a chance that it will fall below on May How much does she expect to gain?
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