Question: Note: For all problems where a risk-free rate or a dividend yield is given, assume that the interest rate and the dividend yield are annual

Note: For all problems where a risk-free rate or a dividend yield is given, assume that the interest rate and the dividend yield are annual and continuously compounded rates.

A stock price is $102, $105, $99, $97, $105, $110, $107 and $105 on eight successive Mondays.

Provide an estimate of the volatility of the stock (standard deviation of the annual rate of return).

Use Excel to compute the estimate. Make sure you explain your calculations.

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