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J , 78. A company's cash position, measured in millions of dollars, follows a generalized Wiener process with a drift rate of 0.1 per month
J , 78. A company's cash position, measured in millions of dollars, follows a generalized Wiener process with a drift rate of 0.1 per month and a variance rate of 0.16 per month. The initial cash position is 2.0. (a) What are the probability distributions of the cash position after 1 month, 6 months, and 1 year? (b) What are the probabilities of a negative cash position at the end of 6 months a 6 and 1 year? (c) At what time in the future is the probability of a negative cash position greatest? . J , 78. A company's cash position, measured in millions of dollars, follows a generalized Wiener process with a drift rate of 0.1 per month and a variance rate of 0.16 per month. The initial cash position is 2.0. (a) What are the probability distributions of the cash position after 1 month, 6 months, and 1 year? (b) What are the probabilities of a negative cash position at the end of 6 months a 6 and 1 year? (c) At what time in the future is the probability of a negative cash position greatest
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