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For a non-dividend paying stock, you are given: The price of the stock follows the Black-Scholes framework. The current price of the stock is 30.

For a non-dividend paying stock, you are given:

  • The price of the stock follows the Black-Scholes framework.

  • The current price of the stock is 30.

  • The stocks annual volatility is 0.4.

  • The probability that the stocks price after 6 months is greater than 45 is 0.4013.

    Determine alpha, the annual continuously compounded rate of return on the stock.

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