Assume the Black-Scholes framework. You are given the following information for a stock that pays dividends...
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Assume the Black-Scholes framework. You are given the following information for a stock that pays dividends continuously at a rate proportional to its price. (i) The current stock price is 0.25. (ii) The stock's volatility is 0.35. (iii) The continuously compounded expected rate of stock-price appreciation is 15%. Calculate the upper limit of the 90% lognormal confidence interval for the price of the stock in 6 months. Assume the Black-Scholes framework. You are given the following information for a stock that pays dividends continuously at a rate proportional to its price. (i) The current stock price is 0.25. (ii) The stock's volatility is 0.35. (iii) The continuously compounded expected rate of stock-price appreciation is 15%. Calculate the upper limit of the 90% lognormal confidence interval for the price of the stock in 6 months.
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Related Book For
Differential Equations and Linear Algebra
ISBN: 978-0131860612
2nd edition
Authors: Jerry Farlow, James E. Hall, Jean Marie McDill, Beverly H. West
Posted Date:
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