Question: 2. Consider a stock with value S = 50. Each period the stock moves up or down, independently, in discrete steps of 5. The probability

2. Consider a stock with value S = 50. Each period

the stock moves up or down, independently, in discrete steps of 5.

2. Consider a stock with value S = 50. Each period the stock moves up or down, independently, in discrete steps of 5. The probability of going up is p = 0.7 and down 1 - p = 0.3. What is the expected value and the variance of the value of the stock after 3 period

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