7 Assume that a stock's price varies according to standard Brownian motion with time measured in days) Note: For each part of this problem, you can either compute the exact answer or estimate it using a computer (with error bars). We prefer the exact answer, if possible! a) You bought the stock today for $100. What is the probability that in 2 days the stock price will be at least $102? b) You bought the stock today for $100. What is the probability that over the next 2 days, you can sell the stock for at least $102? c) You are interested in the chance of large price swings. Let y be the stock price in one day 1. Z be " " "two days Compute the probability that | z2100 Torl Z10 ) C and 64-100)>22-100)) 16100-4)=2(100-2) Assume that the price in two days is Z, and Z>100. Compute or estimate the probability that the maximum price over' the next two days is at least 100+2(7-100). 7 Assume that a stock's price varies according to standard Brownian motion with time measured in days) Note: For each part of this problem, you can either compute the exact answer or estimate it using a computer (with error bars). We prefer the exact answer, if possible! a) You bought the stock today for $100. What is the probability that in 2 days the stock price will be at least $102? b) You bought the stock today for $100. What is the probability that over the next 2 days, you can sell the stock for at least $102? c) You are interested in the chance of large price swings. Let y be the stock price in one day 1. Z be " " "two days Compute the probability that | z2100 Torl Z10 ) C and 64-100)>22-100)) 16100-4)=2(100-2) Assume that the price in two days is Z, and Z>100. Compute or estimate the probability that the maximum price over' the next two days is at least 100+2(7-100)