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Problem 3. Assume the following normal model for the stock price St = So(1+R(0,t)) = S(1+ut +oytz) a) Derive the formulas for the expected stock

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Problem 3. Assume the following normal model for the stock price St = So(1+R(0,t)) = S(1+ut +oytz) a) Derive the formulas for the expected stock price at t and the variance of the stock price at t. b) Derive the formulas for the probability Prob(St

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