Question: Consider a stock whose price at timet is given byStand that follows a geometric Brownian motion (GBM). The expected return is 18% per year and

Consider a stock whose price at timet is given byStand that follows a geometric Brownian motion (GBM). The expected return is 18% per year and the volatility is 50% per year. The current spot price is $5. Compute the expected value of11St in 4 months from now. Express your answers with two decimals.

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