Question
Lets stock return is distributed with = 16% per annum, = 20% per annum S0 = 40, T = 6 month. What would be the
Lets stock return is distributed with = 16% per annum, = 20% per annum S0 = 40, T = 6 month. What would be the lower limit of the stock price with 95% probability (1.96 standard deviations) assuming that the return is lognormally distributed?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Valuation Workbook Step By Step Exercises And Tests To Help You Master Valuation
Authors: McKinsey & Company Inc.
7th Edition
1119611814, 978-1119611813
