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PROBLEM 6. The current price of a stock is $100. Suppose that the loga- rithm of the price of the stock changes according to a

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PROBLEM 6. The current price of a stock is $100. Suppose that the loga- rithm of the price of the stock changes according to a Brownian motion with drift coefficient -0.03 and variance 2-0.02. Give the Black-Scholes cost of an option to buy the stock at timet 5 for a cost of $120

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