Suppose the price S t of a stock follows a lognormal distribution with 0 07 and 0 30 What are the expected simple returns on the stock over a three month horizon ...

Let T denote the terminal date so T t 3 months is the hor ...

Suppose the price S t of a stock follows a lognormal distribution with = 0.07 and

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Suppose the price S_t of a stock follows a lognormal distribution with μ = 0.07 and σ = 0.30. What are the expected simple returns on the stock over a three-month horizon?

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Derivatives Principles And Practice

ISBN: 9780078034732

2nd Edition

Authors: Rangarajan Sundaram

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Question Posted: Jan 10, 2024 01:00 AM

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Suppose the price S t of a stock follows a lognormal distribution with = 0.07 and

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Derivatives Principles And Practice

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