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Problem 5.1. (5 pts) A non-dividend-paying stock is currently valued at S100 per share. Its annual mean rate of return is given to be 12%

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Problem 5.1. (5 pts) A non-dividend-paying stock is currently valued at S100 per share. Its annual mean rate of return is given to be 12% while its volatility is given to be 30%. Assuming the lognormal stock-price model, find ES(2) S(2) >95 (a) $86.55 (b) $101.60 (c) $152.35 (d) $159.07 (e) None of the above

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