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c) A non-dividend paying stock has an initial price of $1,000, a continuous compounded expected return of 20% p.a., and volatility of 35% p.a. The

c) A non-dividend paying stock has an initial price of $1,000, a continuous compounded expected return of 20% p.a., and volatility of 35% p.a. The process for the stock price is =+, and the time interval is one month. Answer the following questions: i. Calculate the stock price at the end of the first month, where = 0.62. ii. Calculate the stock price at the end of the second month, where = -0.28.

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