A price-linked investment pays 300 if the oil price over, Ask an Expert

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A price-linked investment pays $300 if the oil price over the next year increases by more than 5%, an event that can happen with a 55% probability. Otherwise, it pays $60. If the expected return on the security is 12%, how much does the security cost?

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Category:- Basic Finance
Reference No.:- M9858500

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