Question: Consider a stock, whose value is assumed to change each day according to the following probability distribution: Z = { 3 , w i t

Consider a stock, whose value is assumed to change each day according to the following probability distribution:
Z={3,withprobability130,withprobability13-2,withprobability13
Let xn denote the stock price at day n and x0=100.
1. Calculate how many possible combination Xn in the first 4 days such that X3>=104
2. Calculate Pr(X4>=104)

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