Question: Question 4 ( 25 points) Answer the following questions 1. The price of an asset follows a Geometric Brownian motion with a value at t=

Question 4 ( 25 points) Answer the following questions 1. The

Question 4 ( 25 points) Answer the following questions 1. The price of an asset follows a Geometric Brownian motion with a value at t= 0 of $100, expected continuously compounded return of 12%, variance of 0.25. What is the formula to calculate the value of the asset at time t ? 2. In the formula (1), calculate the value of the asset at t=4 (assume Z=0.3 ) Update a PDF file with all your calculations. Question 4 ( 25 points) Answer the following questions 1. The price of an asset follows a Geometric Brownian motion with a value at t= 0 of $100, expected continuously compounded return of 12%, variance of 0.25. What is the formula to calculate the value of the asset at time t ? 2. In the formula (1), calculate the value of the asset at t=4 (assume Z=0.3 ) Update a PDF file with all your calculations

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