Question: . Assume S(0) = 100, r = 8.00%, q = 0.00% and volatility = 30.00%, and T-t = 1 yr. What is E[S(T)|S(T)> $105]?

. Assume S(0) = 100, r = 8.00%, q = 0.00% and volatility = 30.00%, and T-t = 1 yr. What is E[S(T)|S(T)> $105]? Note: the following approximation may be useful. (4.2)7x N[x]1 {1+ exp [ -]}-1 (9-x)

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