Typically, traders will use the middle price between an options bid and ask to think about a fair value. Problems occur using this mid price method: when markets are wide, when a bid and ask are ...

The sample space diagram shows there are 6 ways of making a 7, out of a total of 36 possible outcomes. Therefore, the probability of rolling two dice and the sum being 7 is \(\frac{6}{36} = \frac{1}{6 ...