Question: 2. Consider a given non-dividend paying stock whose price, St, satisfies dSt = uStdt + o StdW+, where W+ is a Brownian motion. We here

2. Consider a given non-dividend paying stock whose price, St, satisfies dSt = uStdt + o StdW+, where W+ is a Brownian motion.

2. Consider a given non-dividend paying stock whose price, St, satisfies dSt = uStdt + o StdW+, where W+ is a Brownian motion. We here measure time in years and the risk-free rate is 1.5% per annum. (a) [5 pts] Suppose that you have observed the following weekly prices of the stock: 30.5, 32.2, 31.1, 30.4, 30.3, 31.9, 32.1, 31.0, 30.1, 30.0. Estimate the stock price volatility. Use this volatility estimate to answer the following questions

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