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Problem 297 of 333HardStochastic ProcessesP297
Up ten before flat again
Your P&L starts at 0 and each trade moves it up or down by $1 with probability each, independently.
(a) What is the probability that the P&L reaches a profit of $10 before it first returns to 0?
(b) Count the trades after which the P&L equals exactly $10, up to the moment it first returns to 0. What is the expected count?
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