Q1 options traders appeared to be taking a bullish approach

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Q1. Options traders appeared to be taking a bullish approach to Target.

Illustrate what does a bullish approach mean? Why does the data on options purchases indicate which traders were taking a bullish approach?

Q2. Customers arrive at an automated coffee vending machine at a rate of 4/min, following a Poisson distribution. Coffee machine dispenses a cup of coffee in exactly 10 seconds.
a. Illustrate what is the average number of people waiting in line?
b. Illustrate what is the average number in the system?
c. Explain how long does the average person wait in line before receiving service?

Reference no: EM13355016

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