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Click to see additional instructions (BONUS QUESTION) The lognormal stock pricing model is commonly used to forecast future stock prices. The model requires three parameters:

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Click to see additional instructions (BONUS QUESTION) The lognormal stock pricing model is commonly used to forecast future stock prices. The model requires three parameters: the stock's current price (TP), the stocks annual growth rate (Rate), and the stocks annual volatility (Vol). The future price of the stock after k years (FPk) is then a random variable given by the following equation: 1 FPK = TP X exp ((Rate = { x Vol2)* k +Vol N(0,1) Vk N 2 In the above, exp() is the exponential function and N(0,1) is the standard normal random variable. What is the mean price of a stock in 6 months (k=0.5) that has a current price of $100, an annual growth rate of 0.05 (5%), and annual volatility of 0.30 (30%)? (Simulate the model for 20,000 iterations and provide your answer in two decimal points, e.g., 190.12. Note that setting iterations less than 20,000 would make your estimations less likely to be correct.) Mean price in six months= $

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