Stock price simulation: A stock?s price is lognormally distributed with mean ? = 15%. The current stock
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Stock price simulation: A stock?s price is lognormally distributed with mean ? = 15%. The current stock price is S0 = 35. Following the template on the spreadsheet, create 60 static standard normal deviates using Data|Data Analysis|Random Number Generation . Use these random numbers to simulate the stock price path over 60 months. Create price paths for ? = 15%, 30%, and 60% and graph these three paths on the same axes.
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Random Number Generation Number of yariables: OK Number of Random Numbers: Cancel Dietrbuton: Normal Helb Parameters Mgan Standard deviation - Random Seed: Output options O Qutput Range: O New Worksheet Ely: New Workbook
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To simulate stock price paths using a lognormal distribution youll need to follow several steps in a spreadsheet application like Microsoft Excel Esse...View the full answer
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