kkn006

Well, if the stock goes up by 15%, the size is 1+ 0.15 = 1.15
If it goes down by 15%, the size is 1-0.15 = 0.85

Helps?

chaojimali

Well don't I feel stupid.

So the original poster is basically questioning why Schweser's method gives the down move size as .87 instead of .85.

5566

This is obviously wrong in Schweser's. There is no choice here, this is straightforward. If a stock is at $100 and it can go up by 15% or down by 10%, then it can only have these two values: Either 115 or 90. You are always told what these percentages are.