Find the expected gain or loss for a holder of a european


Question: Find the expected gain (or loss) for a holder of a European call option with strike price $90 to be exercised in 6 months if the stock price on the exercise date may turn out to be $87, $92 or $97 with probability 13 each, given that the option is bought for $8, financed by a loan at 9% compounded continuously.

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Mathematics: Find the expected gain or loss for a holder of a european
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