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At time zero, a stock is worth $40. The probability of an up move where the stock increases in value by 10% over one time
At time zero, a stock is worth $40. The probability of an up move where the stock increases in value by 10% over one time step is p = 0.6, the probability of a down move where the stock creases in value by 10% over one time step is 1-p=0.4. Find the expected value of the stock (to the nearest cent, one-hundredths of a dollar) after three time steps
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