Question: if you could do this within the next hour and a half, that would help. thanks You buy a stock today for $79. The price

if you could do this within the next hour and a half,if you could do this within the next hour and a half, that would help. thanks

"You buy a stock today for $79. The price of the stock at the end of the first year is normally distributed with a mean of 79+2.93 and a standard deviation of 3. The stock price at the end of each year depends on the stock price at the beginning of the year. If the stock price at the end of the first year is $X (which is random), then the price of the stock at the end of the second year is normally distributed with a mean of X+2.93 and a standard deviation of 3. If the stock price at the end of the second year is $Y (which is random), then the price of the stock at the end of the third year is normally distributed with a mean of Y+2.93 and a standard deviation of 3. Use SIPMath with 100000 trials to calculate the probability that the stock price at the end of the third year will be less than $79. Express your answer as a probability between 0 and 1." "You buy a stock today for $79. The price of the stock at the end of the first year is normally distributed with a mean of 79+2.93 and a standard deviation of 3. The stock price at the end of each year depends on the stock price at the beginning of the year. If the stock price at the end of the first year is $X (which is random), then the price of the stock at the end of the second year is normally distributed with a mean of X+2.93 and a standard deviation of 3. If the stock price at the end of the second year is $Y (which is random), then the price of the stock at the end of the third year is normally distributed with a mean of Y+2.93 and a standard deviation of 3. Use SIPMath with 100000 trials to calculate the probability that the stock price at the end of the third year will be less than $79. Express your answer as a probability between 0 and 1

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!