Consider a stock currently trading at $10, with expected annual return of 15% and annual volatility of 0.2. Under our st

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answerhappygod
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Consider a stock currently trading at $10, with expected annual return of 15% and annual volatility of 0.2. Under our st

Post by answerhappygod »

Consider a stock currently trading at $10, with expected annual
return of 15% and annual volatility of 0.2. Under our standard
assumption about the evolution of stock prices, what is the
probability that the price of the stock in one years time will be
below $9?
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