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(b) Each day, the price of a particular stock can move randomly by step size of $1.5 units up with probability p, or 1

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(b) Each day, the price of a particular stock can move randomly by step size of $1.5 units up with probability p, or 1 unit down with probability 1-p. Each day's movement is independent of one another. (i) (ii) Assuming that the stock started at $100, compute the probability that, after 50 days, the position of the stock is at least $110, assuming that P = 0.5. (10 marks) Calculate the expected price after n days, expressing your answer in p and q where q-1-p. (p is not 0.5) (5 marks)

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