## How do I calculate expected return of an option spread? [closed]

I am trying to calculate a problem. Lets say something has a mean of 100, with stdev of 10. Max loss is 1 if value goes to 95. Max gain is 2 if value goes to 110. How can I calculate the average return?

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I am trying to post a question to MO. Max gain could be high if a good answer comes out. Max loss is two minutes' time if I get downvoted and the thread is closed for being clearly off-topic. What is the average return of the posting (a) to me and (b) to the MO users? – T. Jul 24 2010 at 21:04
I don't have enough reputation to downvote, so I will shake my head at your question and then write about it in a comment. – Eric Tressler Jul 24 2010 at 21:08
@NewbieW This site is intended for questions of interest to research mathematicians. Your question is not at this level, and therefore is inappropriate for the site. – Keenan Kidwell Jul 24 2010 at 21:21
@NewbieW: for finance questions in particular there tends to be an unpleasantly asymmetrical "upside" for the asker and a downside for the respondents. The people getting the finance answers are not likely to be answering the topology and geometry questions for other users, nor donating a slice of their immediate or later gains to improving MO in any way. If this is not true in your case, let us know; it would raise the probability of someone posting a more detailed answer to your question other than "it's off topic". – T. Jul 24 2010 at 21:34
T and Tressler, I think you're being way too snarky. New people who post off-topic questions mostly don't realise that's what they're doing. If you can be bothered to comment, why not just explain the issue, as Keenan did. Also T, I don't follow your point about finance. Interesting questions about financial mathematics should be fine, just like interesting questions about topology or geometry. Where is the downside to answering such a question, if you have the expertise to do so? And why do you think someone who asks a valid finance question would be less likely to contribute answers to MO? – James Martin Jul 24 2010 at 23:06