Enter an expected future stock price, and the Option Finder will suggest the best call or put option that maximises your profit. E(X)  is the expected value of the random variable X . This is mainly used in statistics and probability analysis. xi  is the i th outcome of the random variable X . This online expected value calculator will help you to find the expected value swiftly and easily of a discrete random variable X. So that’s why if any of the event probability is greater than 1, calculator shows an error message. Enter all known values of X and P(X) into the form below and click the "Calculate" button to calculate the expected value of X. Click on the "Reset" to clear the results and enter new values. Calculate the value of a call or put option or multi-option strategies. Tax implications. The formula used to find the expected value for a number or set of numbers is defined as : Expected value = Call Option Put Option; Theoretical Price: 3.019: 2.691: Delta: 0.533-0.467: Gamma: 0.055: 0.055: Vega: 0.114: 0.114: Theta-0.054-0.041: Rho: 0.041-0.041 Health! Also, you can understand how the algorithm is used by a calculator to find the discrete random variable’s expected value. Expected value analysis is a special way of determining severity in risks. Once you spin the bottle, it has an equal one-fifth chance to stop at first, Second, third, fourth or fifth player. To calculate expected value, with expected value formula calculator, one must multiply the value of the variable by the probability of that value is occurring. Options Profit Calculator is based only on the option's intrinsic value. Enter all known values of X and P (X) into the form below and click the "Calculate" button to calculate the expected value of X. Click on the "Reset" to clear the results and enter new values. Knowing how to find the expected value will not be difficult for you. Enter all known values ​​of Probability of x P (x) and Value of x in blank shaded boxes. Measures center of the Probability distribution, Reduces information to one possibility /answer, The risk rate is high as it ignores the risk, The difficulty for assessing probabilities of different results. Provide this information, the calculation is very simple. Random Variable gives its weighted average. This is because any events happenings probabilities can’t be greater than 100%. To accurately find the mean value of a set of values, we introduce the Mean Values Calculator . The Expected Value of a random variable always calculated as the center of distribution of the variable. P(xi)  is the probability of outcome xi . For weighted average calculations, try Average Calculator. P(Xi) = Probability This value is also known as expectation, the average, the mean or the first moment. Updates . Additional features of expected value calculator. By calculating expected value, users can easily choose the scenarios to get their desired results. This value is calculated by multiplying possible results by the likelihood of every result will appear and then take gross of all these values. This online expected value calculator will help you to find the expected value swiftly and easily of a discrete random variable X. In case if you want to calculate probability and not the expected value, Use this Probability Calculator for accurately finding the probability at run time. Give the number of the probability of success and values of x, expected value calculator will notify you about the expected value for a discrete random variable. Every time the total possible result is 100%. It does not factor in premium costs since premium is determined by the people of the market. For example, five players playing spin the bottle. Copyrights 2020 © calculatored.com . To do this, we must measure the probability of the risk in numbers between 0.0 and 1.0. Step 1: The profit is based on a person buying an option at low price and selling it at a higher price before the option … By Developing 100+ online Calculators and Converters for Math Students, Engineers, Scientists and Financial Experts, calculatored.com is one of the best free calculators website. The equity and index option strategies available for selection in this calculator are among those most widely used by investors. This calculator will tell you the expected value for a binomial random variable, given the number of trials and the probability of success. Options are sold in contracts, with each contract representing 100 options. The expected value is the value which you would … This expected value calculator helps you to quickly and easily calculate the expected value (or mean) of a discrete random variable X. This expected value calculator helps you to quickly and easily calculate the expected value (or mean) of a discrete random variable X. For finding only the leftover value, use the Remainder Calculator or if the value exceeds to its limits/values, try out Rounding Calculator. By calculating expected values, expected outcomes of probabilities are calculated by a set of numbers and the individual probabilities sum up to 1 or 100%. Click the "Calculate" button and the results will represent the expected value. To calculate significant figures, use Sig Fig Calculator. Enter all values ​​numerically and separate them by commas. or read more about it. Expected value formula calculator does not deals with significant figures. Also, remember that none of the probabilities for any set of numbers is greater than 1. In other words, a put option’s value is the greater of: strike price minus underlying price (if the option expires in the money) zero (if it doesn’t) Let’s create a put option payoff calculator in the same sheet in column G. The put option profit or loss formula in cell G8 is: =MAX(G4-G6,0)-G5 It is calculated by summing the payout at expiration multiplied by the probability of that payout. Please enter the necessary parameter values, and then click 'Calculate'. Most importantly this value is the variables long-term average value. Expected value calculator is used to calculate expected value of all type of variables. Try Option Finder. The profit is based on a person buying an option at low price and selling it at a higher price before the option expires. It does not factor in premium costs since premium is determined by the people of the market. Expected Value Calculator for a Binomial Random Variable. If you turn the bottle an infinite number of times, you will see that the average value equals 3.0. Therefore, there is not a single possibility of having a probability greater than 1 in any event or total of all events. Theory: Expected value of discrete random variable.