Stock price simulation: A stock?s price is lognormally distributed with mean ? = 15%. The current stock

Question:

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.

image

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Financial Modeling

ISBN: 9780262027281

4th Edition

Authors: Simon Benninga

Question Posted: