Suppose a stock price St follows a Brownian motion process with an initial price of S 0 $50 and a variance per time period equal to 2 4 What is the probability that the stock price is less than $56 at time 3 ...

Since S t N504t then S 3 N 5012 that is the distribution ...

Suppose a stock price St follows a Brownian motion process with an initial price of S 0

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Suppose a stock price St follows a Brownian motion process with an initial price of S₀= $50 and a variance per time period equal to σ²= 4. What is the probability that the stock price is less than $56 at time 3?

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Financial Trading And Investing

ISBN: 9780323909556

3rd Edition

Authors: John Teall

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Question Posted: Dec 31, 2023 01:07 AM

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Suppose a stock price St follows a Brownian motion process with an initial price of S 0

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