Hello Nicole,
Hope you are fine.
I just want to let you know that pages 532/1038 and 533/1038 of the reading "FRM Part 1: Financial Markets & Products, chapter 12. Option Markets - Employee Stock Options" are repeated.
Thank you!
Regards,
Adrián
HI @QKALH6679,
To calculate the probability of observing an event in A, given that an event in C has been observed we use the following formula:
P(A|C) = P(A ∩ C) / P(C)
In this exercise, P(A ∩ C) is represented by the intersection between the two rectangles A and C (top-half of rectangle C)...
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