Problem #8: The value of a stock follows a Geometric Brownian motion, with drift of 14% and diffusion of 23%. Consider V(S, 1) = , a financial derivative that also follows a Geometric Brownian motion. (a) Find the drift value for the stochastic process followed by V in 6 years. (b) Find the diffusion value for the stochastic process followed by V in 8 years. (A) 0.0764 (B) 0.0827 (C) 0.078 (D) 0.0796 (E) 0.0812 Problem #8(a): Select 1 Part (a) choices. (A) -0.2346 (B) -0.2438 (C) -0.2300 (D) -0.2392 (E) -0.2484 Problem #8(b): Select 1 Part (b) choices. Save Problem #8: The value of a stock follows a Geometric Brownian motion, with drift of 14% and diffusion of 23%. Consider V(S, 1) = , a financial derivative that also follows a Geometric Brownian motion. (a) Find the drift value for the stochastic process followed by V in 6 years. (b) Find the diffusion value for the stochastic process followed by V in 8 years. (A) 0.0764 (B) 0.0827 (C) 0.078 (D) 0.0796 (E) 0.0812 Problem #8(a): Select 1 Part (a) choices. (A) -0.2346 (B) -0.2438 (C) -0.2300 (D) -0.2392 (E) -0.2484 Problem #8(b): Select 1 Part (b) choices. Save