10. (A simulation experimente) Consider a stock price 5 governed by the geometric Brow- nian motion process ds 10 dr + 30 d: 5(1)

(a) Using A 1/12 and S(0) = 1, simulate several (ie, many) years of this process using either method, and evaluate In[S()] as a function of Note that it tends to a limit p. What is the theoretical value of this limit?

(b) About how large must be to obtain two-place accuracy?

(c) Evaluate [In S (1) - pt] as a function of Does this tend to a limit? If so, what is its theoretical value?