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VALUING FINANCIAL OPTIONS WITH THE EXPECTED VALUE OPERATOR A stock has a current selling price [If $20. The distribution of the price of the stock

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VALUING FINANCIAL OPTIONS WITH THE EXPECTED VALUE OPERATOR A stock has a current selling price [If $20. The distribution of the price of the stock one year from now is believed to be as foilows: Price[ X] Probability f { X] 20 .05 21 .06 22 .07 23 .08 24 .09 25 .12 26 .15 27 .13 28 .10 29' .10 30 05 1E

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