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(b) For three non-dividend paying stocks with prices S, (t), S2 (t) and Sz(t) at time t, you are given: d(In S,(t)) = m dt+0.2
(b) For three non-dividend paying stocks with prices S, (t), S2 (t) and Sz(t) at time t, you are given: d(In S,(t)) = m dt+0.2 dz(t) d (In S2(t))= = 0.12 dt +0.3 dz(t) d (In Sz(t))=0.11 dt +0.25 dZ(t) Determine m. (6 marks) (b) For three non-dividend paying stocks with prices S, (t), S2 (t) and Sz(t) at time t, you are given: d(In S,(t)) = m dt+0.2 dz(t) d (In S2(t))= = 0.12 dt +0.3 dz(t) d (In Sz(t))=0.11 dt +0.25 dZ(t) Determine m. (6 marks)
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