A day trader buys an option on a stock that will return $150 profit if the stock goes up today and lose $700 if it goes down. Complete parts a and b below given that the trader thinks there is a 70% chance that the stock will go up.
a) What is her expected value of the option's profit?
b) What do you think of this option?

a) The expected value of the option's profit is $ (Simplify your answer.)