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  3. suppose that p 12 show that is a martingale use...

Question: suppose that p 12 show that is a martingale use...

Question details

Suppose that p \neq 1/2.

Show that \left\{ ( q / p ) ^ { S _ { n } } : n \geq 0 \right\} is a martingale.

Use the optional stopping theorem to find an expression for \mathbf { P } \left( S _ { T } = b \right) .

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