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Miz is considering buying shares of RNU stock. The stock currently sells for $1,000 per...

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Finance

Miz is considering buying shares of RNU stock. The stock currently sells for $1,000 per share. The stock changes in value at 9:00 am each day, either increasing in value by $100 or decreasing in value by $100. The stock will increase in value with 60% probability, and decrease in value with 40% probability. The stock follows a random walk. In three days, what is the probability that the RNU stock is greater than $700?

Select one:

a. 0%

b. 100%

c. 45.4%

d. 93.6%

e. 6.4%

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