2. Consider a stock with value S = 50. Each period the stock moves up or down, independently, in discrete steps of 5. The probability of going up is p 0.7 and down 1-p 0.3. What is the expected value...

2. Consider a stock with value S = 50. Each period the stock moves up or down,<br>independently, in discrete steps of 5. The probability of going up is p 0.7 and down<br>1-p 0.3. What is the expected value and the variance of the value of the stock<br>after 3 period?<br>

Extracted text: 2. Consider a stock with value S = 50. Each period the stock moves up or down, independently, in discrete steps of 5. The probability of going up is p 0.7 and down 1-p 0.3. What is the expected value and the variance of the value of the stock after 3 period?

Jun 09, 2022

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2. Consider a stock with value S = 50. Each period the stock moves up or down, independently, in discrete steps of 5. The probability of going up is p 0.7 and down 1-p 0.3. What is the expected value...

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