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Q2. Implied MAD Today the stock is trading at 100, which is also the expected value of future stock price. If a 110 strike CALL

Q2. Implied MAD

Today the stock is trading at 100, which is also the expected value of future stock price. If a 110 strike CALL is priced at $2, what is the implied MAD?

Q3. Normal distribution

Stock price today at 100. Stdev is 20.

a. How much should a 110 BINARY CALL be priced today?

b. How much should a $110 binary PUT be priced today?

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