Six-month call options with strike prices of $35 and $40 cost $6 and $4, respectively. What is the maximum gain when a bull spread is created by trading a total of 200 options

$300

Explanation:

Calculation for What is the maximum gain when a bull spread is created by trading a total of 200 options

First step is to calculate the cost amount

Cost =6×100−4×100

Cost=$200

Second step maximum payoff of a stock price that is greater than $40 will be $500

Hence,

Maximum gain=$ 500 −$200

Maximum gain = $300

Therefore the maximum gain when a bull spread is created by trading a total of 200 options will be $300

A) Approximate percentage of women with platelet counts within 2 standard deviations of the mean, or between 118.5 and 377.3 = 95%

B) approximate percentage of women with platelet counts between 53.8 and 442.0 = 99.7%

Step-by-step explanation:

We are given;

mean;μ = 247.9

standard deviation;σ = 64.7

A) We want to find the approximate percentage of women with platelet counts within 2 standard deviations of the mean, or between 118.5 and 377.3.

Now, from the image attached, we can see that from the empirical curve, the probability of 1 standard deviation from the mean is (34% + 34%) = 68 %.

While probability of 2 standard deviations from the mean is (13.5% + 34% + 34% + 13.5%) = 95%

Thus, approximate percentage of women with platelet counts within 2 standard deviations of the mean, or between 118.5 and 377.3 = 95%

B) Now, we want to find the approximate percentage of women with platelet counts between 53.8 and 442.0.

53.8 and 442.0 represents 3 standard deviations from the mean.

Let's confirm that.

Since mean;μ = 247.9

standard deviation;σ = 64.7 ;

μ = 247.9

σ = 64.7

μ + 3σ = 247.9 + 3(64.7) = 442

Also;

μ - 3σ = 247.9 - 3(64.7) = 53.8

Again from the empirical curve attached, we cans that at 3 standard deviations from the mean, we have a percentage probability of;

(2.35% + 13.5% + 34% + 34% + 13.5% + 2.35%) = 99.7%