Reference no: EM133072799

On January 1, Flounder Inc. completed its analysis of the prospects for the Geriatric Toy Store and concluded that there was a 10-percent chance the stock price would be $ 175 in one year and an 90-percent chance the stock price would be $ 225. Six months later, Flounder Inc. revised its estimated probabilities to a 25-percent chance of a stock price of $ 175 and a 75 percent chance of $ 225. If the market agrees with Flounder Inc.'s revised probabilities, what is the expected change in stock price from January 1 to July 1? Assume the discount rate is zero. (Round answer to 2 decimal places, e.g. 15.25.)