Question: Consider a stock whose price at time is given by and that follows a lognormal distribution. The expected return is 18% per year and the

Consider a stock whose price at time is given by and that follows a lognormal distribution. The expected return is 18% per year and the volatility is 32% per year. The current spot price is $60. a. Compute the expected price 9 months from now. b. Compute the mean and standard deviation of the log-spot price 9 months from now. c. Compute the 95% confidence interval for the spot price 9 months from now.

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