What is the expected value of the options profit what do yo


A day trader buys an option on a stock that will return $100 profit if the stock goes up today and lose $400 if it goes down. If the trader think there is 75% chance that the stock will go up.

What is the expected value of the option's profit?

What do yo think of the option?

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Finance Basics: What is the expected value of the options profit what do yo
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