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1 A simplified model for the movement of the price of a stock supposes that...

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1 A simplified model for the movement of the price of a stock supposes that on each day stock s price either moves up 1 unit with probability p or moves down 1 unit with probability 1 p The changes on different days are assumed to be independent a What is the probability that after 2 days the stock will be at its original price

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Transcribed Image Text

1 A simplified model for the movement of the price of a stock supposes that on each day stock s price either moves up 1 unit with probability p or moves down 1 unit with probability 1 p The changes on different days are assumed to be independent a What is the probability that after 2 days the stock will be at its original price

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