Price per barrel of crude oil five yrs from now will range between $75-$105, Assume a continuous uniform distribution, the probability price will be less than $180 five yrs from now is closet to :
The minimum bound on the asset price is 0 cause prices cannot be negative. So we are trying to find the probability that the asset price would be between 0 and 180.
Now, the question states that the price would range from 75-105. What I found out was,
What is the proportion of the Oil Price range of 75-105 compared to the whole range of 0-180?
On the info you've given its 100%... you've defined the distribution to be between 75 and 105. I'm guessing there's a typo somewhere....
Just for anoyone looking though, if the disribution of oil price in 5 years was cont. uniform between 75 and 105, probability opf the price being less than 80 would be, the area under the curve between 80 and 75: