11. Let t = 1. What is E(St |St < $98)? What is E(St |St < $120)?...

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11. Let t = 1. What is E(St

|St < $98)? What is E(St

|St < $120)? How do both expectations change when you vary t from 0.05 to 5? Let σ = 0.1. Does either answer change? How?

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Derivatives Markets Pearson New International Edition

ISBN: 978-1292021256

3rd Edition

Authors: Robert L. Mcdonald

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Question Posted: Jul 22, 2024 09:00 AM

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10. What is Pr(St < $98) for t = 1? How does this probability change when you change t?
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11. Let t = 1. What is E(St |St < $98)? What is E(St |St < $120)?...

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Derivatives Markets Pearson New International Edition

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