Question

The value of a stock market share may be assumed to vary from day to day according to the following rule: if it is £n one day (n > 0), then the next day with probability p it will be worth £(n + 1) and with probability q-it will be worth E(n Gary owns one share. Today it is worth £10. Gary has decided to sell the share immediately if its value either drops to £6 (in which case he will have made a loss) or rises to £15 (in which case he will have made a profit Select the correct option from the drop-down list for each of the questions below What is the expected number of days (rounded to the nearest day) until Gary sells the share? What is the probability (correct to four decimal places) that Gary will make a prot Choose... when he sells the share?
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