Question: Question 5 Consider a variable S that follows the process dS=mdt+sdz For the first three years, m=2 and s=3; for the next three years, m3

Question 5 Consider a variable S that follows the process dS=mdt+sdz For the first three years, m=2 and s=3; for the next three years, m3 and s=4. If the initiar value of tho variable is 5 , what is the probability distribution of the value of the variable at the end of year 6 ? N(20,75) N(28,75) N(14,28) N(5,7) Question 5 Consider a variable S that follows the process dS=mdt+sdz For the first three years, m=2 and s=3; for the next three years, m3 and s=4. If the initiar value of tho variable is 5 , what is the probability distribution of the value of the variable at the end of year 6 ? N(20,75) N(28,75) N(14,28) N(5,7)

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