On January 1, You Forecasted That There Is a 45

Multiple Choice

On January 1, you forecasted that there is a 45.0% chance that the price of Edward Bear Inc.shares will be $95 in one year while there is a 55.0% chance that the share price will be $35.Six months later, you revised the estimated probability to 25.0% chance of the high state (stock price of $95) .If the market agrees with your revised forecasts, what is the expected change in share price from January 1 to July 1? Assume the discount rate is zero.

A) Price goes up by 19.35%
B) Price goes down by 19.35%
C) Price goes up by 24%
D) Price goes down by 24%