Question
For 300 trading days, the daily closing price of a stock (in $) is well modeled by a Normal model with mean $195.52 and standard
For 300 trading days, the daily closing price of a stock (in $) is well modeled by a Normal model with mean $195.52 and standard deviation $7.12. According to this model, what cutoff value of price would separate the
a) lowest 18% of the days?
b) highest 0.54%?
c) middle 89%?
d) highest 50%?
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An Introduction to the Mathematics of Financial Derivatives
Authors: Ali Hirsa, Salih N. Neftci
3rd edition
012384682X, 978-0123846822
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