In​ finance, one example of a derivative is a financial asset whose value is determined​ (derived) from a bundle of various​ assets, such as mortgages. Suppose a randomly selected mortgage in a certain bundle has a probability of 0.18 of default. ​(a) What is the probability that a randomly selected mortgage will not​ default? ​(b) What is the probability that nine randomly selected mortgages will not default assuming the likelihood any one mortgage being paid off is independent of the​ others? Note: A derivative might be an investment that only pays when all nine mortgages do not default. ​(c) What is the probability that the derivative from part​ (b) becomes​ worthless? That​ is, at least one of the mortgages default



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