Bunuel wrote:
Every trading day, the price of CF Corp stock either goes up by $1 or goes down by $1 with equal likelihood. At the end of 5 trading days, what is the probability that the price of CF Corp stock is up by exactly $3 from its initial price?
A. \(\frac{1}{16}\)
B. \(\frac{1}{8}\)
C. \(\frac{5}{32}\)
D. \(\frac{9}{32}\)
E. \(\frac{3}{8}\)
I know I have done something wrong, but still take a look please.
I have counted all the possibilities of stock price & since every outcome has same likelihood, just found
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