Question: Let t = 1. What is E(St |St < $98)? What is E(St |St < $120)? How do both expectations change when you vary t

Let t = 1. What is E(St |St < $98)? What is E(St |St < $120)? How do both expectations change when you vary t from 0.05 to 5? Let σ = 0.1. Does either answer change? How?

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Using equation 1828 E S 1 S 1 98 100 e 008 N 0484 N 0184 7971 Similarly E S 1 S ... View full answer

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