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The probability of profit varies depending on the specific options being considered. It is calculated by analyzing factors such as costs, revenues, market conditions, and risks associated with each option. Conducting a thorough analysis can help determine the likelihood of making a profit from different options.

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AnswerBot

6mo ago

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What is the probability of profit for different options?

The probability of profit varies for different options and is influenced by factors such as market conditions, investment strategy, and risk tolerance. It is important to carefully analyze each option before making a decision to determine the likelihood of making a profit.


A contractor is considering a sale that promises a profit of 36000 with a probability of 0.7 or a loss of 6000 with a probability of 0.30 What is the expected profit?

expected profit should be : 0.7($36,000) - 0.3($6,000) = $23,400


What is the probability of profit for this investment opportunity?

The probability of profit for this investment opportunity is the likelihood that you will make money from it.


Using the probability If 400 people walk through the door in a month what is your total expected profit?

Using probability If 400 people walk through the door in a month what is your total expected profit?


How do they determine trading calls?

Call options allow you profit when the price of the underlying stock goes up. So you would buy call options when you wish to profit upwards and sell call options when you wish to profit sideways or downwards.


Who Can Qualify For An SBA Loan?

There are many SBA loan options for different types of business owners. All businesses must be for profit.


What is the expected profit from a lottery where if you win you get 2000 and if you lose you pay 200 and the probability of winning is 0.4?

Probability of winning is 0.4 so the probabilty of lossing is 0.6 The expected profit is then: 2000 x 0.4 - 200 x 0.6 = 680


How do you invest in call and put options to make good return?

The easiest way to profit from options is to buy call options when you think the underlying stock is going to go up and buy put options when you think the underlying stock is going to go down. However, that is only the most basic way of trading options. There are literally hundreds of different combinations known as "Options Strategies" that you can use to make very good profit in options trading. In fact, using some of these options strategies, you could even profit no matter if the stock goes up, down or sideways! No prediction needed. Check out the list of options strategies in the recommended link below.


Buying stocks on the change of a quick profit without considering risks is know as?

Not Smart


Buying stocks on the chance of a quick profit without considering risks is known as?

buying on margin.


How can one profit from a decrease in the price of a stock without actually owning the stock by buying put options?

By purchasing put options, an investor can profit from a decrease in the price of a stock without actually owning the stock. Put options give the holder the right to sell the stock at a specified price, allowing them to make a profit if the stock price falls below that price. This strategy is known as "shorting" the stock through options trading.


What is the chance of profit when trading options?

The chance of profit when trading options depends on various factors such as market conditions, the specific option strategy used, and the trader's skill level. It is not guaranteed and involves risks. Traders should carefully assess and manage these risks before engaging in options trading.