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Underlying stock follows uniform distribution with mean at 100 and MAD=10. Stock price today is priced at the mean value. Consider a call option with

Underlying stock follows uniform distribution with mean at 100 and MAD=10. Stock price today is priced at the mean value.

Consider a call option with strike at 110.

a. what is the prob that option will expire ITM?

b. what is the avg underlying stock price when call expires ITM?

c. what is the avg call payoff when it expires ITM?

d. how much should the call be priced now?

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