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Questions about stock and probability We are given the following information about a stock under the real probability: The continuously compounded expected return is 0.15.

Questions about stock and probability

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We are given the following information about a stock under the real probability: The continuously compounded expected return is 0.15. The continuously compounded dividend yield is 0.04. The volatility is 0.3. and the current price is S(0)=45. Calculate P(5(l) alt lessthanorequo 45). Given that 5(0.6) = 47, calculate P(5(l) alt lessthanorequo 45|S(0.6))

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