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**STOCHASTIC CALCULUS FOR INSURANCE AND FINANCE** (a) Suppose that the current price of a stock is 60 with expected return u and volatility of 20%,

**STOCHASTIC CALCULUS FOR INSURANCE AND FINANCE**

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(a) Suppose that the current price of a stock is 60 with expected return u and volatility of 20%, respectively. Determine u such that the probability that the stock price will be greater than 90 in two years is 0.225

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