Stock Market Prices. Suppose it is observed that if the closing price per share of a...

 

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Stock Market Prices. Suppose it is observed that if the closing price per share of a certain stock A is $105 on a given day, it will lose $5 by closing time on the next day 40% of the time. If the closing price per share is $100, there is a 55% chance that the closing price per sharethenext day will be up $5 to $105. What is the long-run expected price per share of the stock? Stock Market Prices. Suppose it is observed that if the closing price per share of a certain stock A is $105 on a given day, it will lose $5 by closing time on the next day 40% of the time. If the closing price per share is $100, there is a 55% chance that the closing price per sharethenext day will be up $5 to $105. What is the long-run expected price per share of the stock?