A day trader buys an option on a stock that will return $100 profit if the stock goes up today and lose $500 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.

$274.95

Step-by-step explanation:

The mean return for the option is:

The variance and standard deviation are given by:

Where "x" represents the possible returns ($100 and -$500), and "p" represents their respective likelihoods (70% and 30%). The standard deviation is:

The standard deviation of the day trader's option value is $274.95.

d? maybe

step-by-step explanation:

step-by-step explanation: