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