Question: Consider a stock whose price at time is given by St and that follows a geometric Brownian motion (GBM). The expected return is 20% per
Consider a stock whose price at time is given by St and that follows a geometric Brownian motion (GBM). The expected return is 20% per year and the volatility is 71% per year. The current spot price is $4. Compute the expected value of 1/ in 12 months from now. Express your answers with two decimals
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