An investment with initial value zero can go up or down $10,000 per month with equal likelihood. (a) What is
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(a) What is probability that the investment will reach $1,000,000 without reaching –$250,000?
(b) What is the probability that the investment will reach $1,000,000 twice without reaching –$250,000?
(c) Suppose the up vs. down probabilities are different. What is the minimum win probability p that would make it more likely than not to reach +$1M before hitting –$250K?