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Problem 8 . Recall the BS formula S t = S 0 exp ( ( r - 2 2 ) t + W t )

Problem 8. Recall the BS formula St=S0exp((r-22)t+Wt) where there is no dividend. Does
the drift parameter r>0 imply that the stock price St has a positive drift (St has an increasing trend?)
Please explain.
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