# Question: If x N 2 5 what is E ex What is

If x ∼ N(2, 5), what is E(ex)? What is the median of ex?

## Answer to relevant Questions

Suppose you observe the following month-end stock prices for stocks A and B: For each stock: a. Compute the mean monthly continuously compounded return. What is the annual return? b. Compute the mean monthly standard ...Assume S0 = $100, r = 0.05, σ = 0.25, δ = 0, and T = 1. Use Monte Carlo valuation to compute the price of a claim that pays $1 if ST > $100, and 0 otherwise. (This is called a cash-or-nothing call and will be further ...Let ui ∼ U (0, 1). Compute _12 i=1 ui − 6, 1000 times. (This will use 12,000 random numbers.) Construct a histogram and compare it to a theoretical standard normal density. What are the mean and standard deviation? (This ...Use Itˆo’s Lemma to evaluate d[ln(S)]. For the following four problems, use Itˆo’s Lemma to determine the process followed by the specified equation, assuming that S(t) follows (a) Arithmetic Brownian motion, equation ...Suppose that S follows equation (20.36) and Q follows equation (20.37). Use Itˆo’s Lemma to find the process followed by S2Q0.5.Post your question