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An option to buy a stock is priced at $ 1 0 0 . If the stock closes above 3 0 on May 1 5

An option to buy a stock is priced at $100. If the stock closes above 30 on May15, the option will be worth $900. If it closes below20, the option will be worth nothing, and if it closes between 20 and 30(inclusively), the option will be worth $100. A trader thinks there is a 60% chance that the stock will close in the20-30 range, a 10% chance that it will close above30, and a 30% chance that it will fall below 20 on May 15. Complete parts(a) through(c).
a) How much does she expect to gain?
b) What is the standard deviation of her gain?
c) Should she buy the stok option?

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