Bullish on the common stock of the wildwood

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Reference no: EM13286351

You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock is $50 per share. You want to establish a bullish money spread to help limit the cost of your option position. You find the following option quotes:

16.If in June the stock price is $53 your net profit on the bull money spread would be ________.
A.$300
B.-$400
C.$150
D.$50

and...

18.One hundred fund managers enter a contest to see how many times in thirteen years they can earn a higher return than their competitors. The probability distribution of the number of successful years out of thirteen for the best performing money managers is

Out of this sample, chance alone would indicate that there is a ______ probability that someone would beat the market at least 11 times out of 13 years.
A.51.3%
B.65.9%
C.67.1%
D.10.83%

 

Reference no: EM13286351

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