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

A simplified model for the movement of the price of a stock supposes that on each day the stocks price changes and it either moves up 1 unit with probability S or moves down 1 unit with probability 1 " S. The changes on different days are assumed to be independent.

L. What is the probability that after 2 days the stock will be at its original price?

LL. What is the probability that after 3 days the stocks price will have increased by 1 unit?

LLL. Given that after 3 days the stocks price has increased by 1 unit, what is the probability that it went up on the first day?

Math   Statistics-And-Probability   
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