medium   Finance

Option Dice III

A release-checked medium problem for training Finance, Games.

Question

You have a simple options chain on the expected value of the product of two dice rolls. You make a $2$ unit wide market on the call at $19$. $$$$ Enter your answer as the sum of the bid and ask. For example, if your market was $5$ @ $7$, you would enter $12$.

Practice focus

This Finance problem is tagged Finance, Games. State the random variables and conditioning information explicitly, then check the result against boundary cases before opening hints or a solution.

Explore related collections

Reviewed questions in this area