Hi!
This is not a homework problem. I have the following equation:
(S - P) * (1 - X) = P * X
Where S is the spread (i.e., the difference) between two strike prices in dollars, P is the premium received for an option in dollars, and X is the probability of success.
I need to re-write the equation to solve for X. That is, I need to find out the probability to break even.
My algebra is rusty. Please help.
Thank You!
T.
This is not a homework problem. I have the following equation:
(S - P) * (1 - X) = P * X
Where S is the spread (i.e., the difference) between two strike prices in dollars, P is the premium received for an option in dollars, and X is the probability of success.
I need to re-write the equation to solve for X. That is, I need to find out the probability to break even.
My algebra is rusty. Please help.
Thank You!
T.