26. You are given the following discrete uniform probability distribution of gross profits from purchase of an option: Profit Cumulative Distribution Function $0 0.2 $1 0.4 $2 0.6 $3 0.8 $4 1.0 The probability of a profit greater than or equal to $1 and less than or equal to $4 is closest to: A. 0.4. B. 0.6. C. 0.8.

QUESTIONS 19 THROUGH 32 RELATE TO QUANTITATIVE METHODS

MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM MORNING 2013

26.

You are given the following discrete uniform probability distribution of gross profits from

purchase of an option:

Profit

Cumulative Distribution Function

0.2

0.4

0.6

0.8

1.0

The probability of a profit greater than or equal to $1 and less than or equal to $4 is closest to:

A. 0.4.

B. 0.6.

C. 0.8.