For a Stock Price Following a Binomial Process,the Up Factor

Multiple Choice

For a stock price following a binomial process,the up factor U = 1.1,the down factor D= 0.9,the dollar return (1 +R) = 1.05 percent (per period) ,and the initial stock price is 100.The probability that the stock will have 18 up movements and 2 down movements is:

A) 0.0556
B) 0.0669
C) 0.075
D) 0.10
E) None of these answers are correct.