Question

# Suppose that current stock price is 50$.Its annualized volatility is 25% and annualized return 11% i.e. we assume

that the stock price follows dXt = 0.11Xtdt+0.25XtdWt. Write the probability density function for the stock in 1 year. What is the mean and standard deviation of the terminal stock price? (standard deviation of price, not of return)

### Recently Asked Questions

- Suppose a friend of yours has given birth to a 10 pound 3 ounce baby (1 pound = 16 ounces). Is this unusual? Find the z-score, sketch the graph, and in writing

- Garrang School of Science wants to evaluate its affirmative action for students. The faculty told all students to partake in the civil examination and the

- I know that we can find the fraction of time spend in a state of a *irreducible* Markov chain by finding the stationary matrix, but I am confused how to begin