Question: Consider a security with the stock prices S(1) = 80 with probability 1/8 90 with probability 2/8 100 with probability 3/8 110 with probability 2/8

Consider a security with the stock prices

S(1) =

80 with probability 1/8

90 with probability 2/8

100 with probability 3/8

110 with probability 2/8

What is the current price of the stock for which the standard deviation would be 18%

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