Page 1 of 1
Suppose that the fluctuations in the price of a stock in a certain company are well described by a geometric Brownian mo
Posted: Wed May 11, 2022 5:48 am
by answerhappygod
- Suppose That The Fluctuations In The Price Of A Stock In A Certain Company Are Well Described By A Geometric Brownian Mo 1 (35.89 KiB) Viewed 16 times
Suppose that the fluctuations in the price of a stock in a certain company are well described by a geometric Brownian motion with drift u = a - - 02/2, where a = -0.1 and o2 = 4. A person buys a share of this stock at a price of $100 and will sell if ever the price rises to $110 (a profit) or drops to $95 (a loss). What is the probability that this person sells at a profit? =