The prices for two stocks evolve as the processes S t1 =10exp{ 1 w t1 } and
Question:
The prices for two stocks evolve as the processes St1 =10exp{σ1wt1} and St2 =11exp{σ2wt2}, where wt1 and wt2 are independent Brownian motions, σ1 = 0.1, and σ2 = 0.2. What are the initial prices for the stocks? Find the probability that during a year the price St1 will meet the price St2.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
The initial prices are Soi 10 and S02 11 Consider the process X St1S12 exp...View the full answer
Answered By
SUMAN DINDA
I LIKE TO TEACH STUDENTS. SO, I START MYSELF AS A PRIVATE TUTOR. I TEACH STUDENTS OF DIFFERENT CLASSES. I HAVE ALSO DONE BACHELOR OF EDUCATION DEGREE(B.ED). DURING THIS COURSE I HAD TO TEACH IN A SCHOOL. SO I HAVE A GOOD EXPERIENCE IN TEACHING.
1+ Reviews
10+ Question Solved
Related Book For 
Question Posted:
