Question: Consider a stock whose future price is log-normally distributed. The required rate of return on the stock in the real world is 15% per annum,

Consider a stock whose future price is log-normally distributed. The required rate of return on the stock in the real world is 15% per annum, and its volatility is 20%. The current stock price is $100. The risk-free interest rate is 5% per annum. What is thereal probabilitythat the future stock price in year 3 is greater than $150?

0.084

0.181

0.482

0.518

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