Each week Manhattan GMAT posts a GMAT question on our blog and follows up with the answer the next day. Are you up for the challenge?
Every trading day, the price of CF Corp stock either goes up by $1 or goes down by $1 with equal likelihood. At the end of 5 trading days, what is the probability that the price of CF Corp stock is up by exactly $3 from its initial price?
(A) 1/16
(B) 1/8
(C) 5/32
(D) 9/32
(E) 3/8