A call option on Jupiter Motors stock with an exercise price of $75 and one-year expiration is selling at $6. A put option on Ju
1 answer:
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Answer:
total payoff = $50000
Explanation:
solution
The payment is indicated on a specific node in a circular format.
This is the sum of the results and their possibilities.
we get here now total payoff node is
total payoff = 0.5 × $100,000 + 0.5 × 0
total payoff = $50000
and given the number, it shows that the right decision is the cancer lab. This is because it has the highest price with expected 60000
