11. An investor buys 1000 shares of the XYZ Corporation at $50.00 per share. Subsequently, the stock
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11. An investor buys 1000 shares of the XYZ Corporation at $50.00 per share. Subsequently, the stock price varies by $0.125 (1/8) every day, but unfortunately it is just as likely to move down as up. What is the most likely value of his holdings after 60 days?
Hint: First calculate the distribution of the change in the stock price after 60 days.
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Related Book For
Fundamentals Of Probability With Stochastic Processes
ISBN: 9780429856273
4th Edition
Authors: Saeed Ghahramani
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