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1 4 . An Ito process is fitted to a stock using a regression and the estimate is: dt + dz = 0 . 0

14. An Ito process is fitted to a stock using a regression and the estimate is:
dt +dz =0.05 dt +0.10 dz where the drift and standard deviation are expressed on an annual basis, that is =5% p.a. If the stock is currently trading for $10, then in 6-months time, your best guess of the stock price if you trust this process fitting is:
A) $9.51
B) $10
C) $10.25
D) $10.50
E) $11

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