Problem 3 Assume that the stock of ABC Corp. either retains…

Problem 3 Assume that the stock of ABC Corp. either retains the value that it had at the close of the previous day, or gains a point, or loses a point (the respective states denoted as 0, +1,−1), independently according to the following transition probability matrix Let {Xn}n≥0 denote the corresponding Markov Chain.