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5. (2 points) We can simulate price of a stock using d5 = asdt + oath/(E 7 (1) Let us suppose that today's price of

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5. (2 points) We can simulate price of a stock using d5 = asdt + oath/(E 7 (1) Let us suppose that today's price of a stock is $100, ,u = 1, a = 0.2, dt = and 45 is random number normally distributed with mean 0 and variance 1, i.e. 9b = N(0, 1) (This can be achieved in MATLAB with qb = randn()). Next we can calculate ds using equation (1), s + ds will give us new value of s after time-step (it. Write a script to simulate stock price using the above process. Simulate price 5 using different values of a and a and share your observations. What happens when we replace M by dt in equation (1)

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