Solution Question 4_15

Solution Question 4_15 - $3.50 $0.00 Net Profit of 1000...

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Intial Cash $500.00 Annual Interest 8.00% Monthly Interest 0.6667% Net Profit Alternative 1 Put Money in Money Market for 1 Month $3.33 Alternative 2 Buy 17 Shares (can only buy an integer number) Current Apricot Wins Apricot Looses Price Per Share $28.50 $33.50 $25.75 Cost of Buying 17 Shares $484.50 $569.50 $437.75 Remaining Cash $15.50 $15.50 $15.50 Interest of 1 Month of Remaining Cash $0.10 $0.10 Total $500.00 $585.10 $453.35 Net Profit $85.10 -$46.65 Alternative 3 Buy Option Cost of Buying the Option of Buying 1000 Shares $500.00 at $30.00 1 month later Apricot Wins Apricot Looses Instant Profit per Share after one Month
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Unformatted text preview: $3.50 $0.00 Net Profit of 1000 Shares + Buying Option $3,000.00-$500.00 Probability of Apricot Winning 25.00% Different Between EMV Money Market and Option #ADDIN? #ADDIN? #ADDIN? 3.3333333333 #ADDIN? Decision #ADDIN? 25.0% #ADDIN? 85.1033333333 #ADDIN? #ADDIN? Lawsuit Outcome #ADDIN? 75.0% #ADDIN?-46.6466666667 #ADDIN? 25.0% #ADDIN? 3000 #ADDIN? #ADDIN? Lawsuit Outcome #ADDIN? 75.0% #ADDIN?-500 #ADDIN? Investment Decision Money Market Buy Option Buy Shares Apricot Wins Apricot Looses Apricot Looses Apricot Wins...
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