How can we use normal distribution for finding the probability of a stock price offer where current price offer depends upon the last price offer. The price offer on some day can go 10% above (at the maximum) or 10% below (at the minimum) from the last price offer. If NOT, which is the suitable distribution for the stated problem?
Stock prices have been modeled using the Lognormal distribution, not the Normal distribution. See this paper http://math.ucsd.edu/~msharpe/stockgrowth.pdf for more detailed information.
This does not mean that the current price offer depends on the last price offer.