Suppose the stock price (S)osrs1 during a period of 1 month is given by S, = So exp (ut +oviB,), (3) where (B,)ostsi is the standard Brownian motion, and the exponential growth rate u = 1% per month and volatility o = 1. (1) What is the expectation of the stock prices So, S/2, and S1? (Hint: Use MGF of normal RVs in the previous exercise.) (ii) What is the probability that the stock price increase by more than 2% in a month?