1. A stock price is currently $60. Assume that the expected return from the stock is 15% and its volatility is 25% per annum. What is the probability distribution of the stock price, ST, in six months? ( , 2 ) = ( , )

2. Calculate a 95% (with 1.96 standard deviation) confidence interval of the stock price, ST, in six months.

3. What is the probability that a six-month European call option on the stock with an exercise price of $70 will be exercised?