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Q2 Starting at some xed time, let F (n) denotes the price of a First Local Bank share at the end of 11. additional weeks,
Q2 Starting at some xed time, let F (n) denotes the price of a First Local Bank share at the end of 11. additional weeks, n 2 1; and let the evolution of these prices assumes that the price ratios F(n)/F(n 1) for 11. 2 1 are independent and identically distributed logmrmal random variables. Assuming this model, with lognormal parameters Jan 2 0.012 and a = 0.048, what is the probability that the price of the share at the end of the four weeks is higher than it is today? [6]
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