3 Black Scholes Option Pricing Assume that a stock price follows a geometric Brownian motion with a drift of 15 and a volatility of 30 The current stock price is $50 (a) What is the probability distribution of the log of the stock price in six months (b) What is the probability that a European cal...

To answer your questions we will make use of the BlackScholes option pricing model Lets address each ...

3. Black-Scholes Option Pricing Assume that a stock price follows a geometric Brownian motion with a...

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