Question

1)A day trader buys an option on a stock that will return ​$200 profit if the...

1)A day trader buys an option on a stock that will return ​$200

profit if the stock goes up today and lose ​$600 if it goes down. If the trader thinks there is a

70​% chance that the stock will go​ up, find the standard deviation of the day​ trader's option value.

The standard deviation of the day​ trader's option is____$

.(Round to two decimal places as​ needed.)

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