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The value of a stock follows a Geometric Brownian motion, with drift of 37% and diffusion of 12%. The stock pays dividends proportional to its
The value of a stock follows a Geometric Brownian motion, with drift of 37% and diffusion of 12%. The stock pays dividends proportional to its price an annual rate of 24%. The current stock price is $49. Calculate the probability that the stock price is at least $177 in 9 years. (A) 0.3094 (B) 0.3032 (C) 0.297 (D) 0.2908 (E) 0.3156 The value of a stock follows a Geometric Brownian motion, with drift of 37% and diffusion of 12%. The stock pays dividends proportional to its price an annual rate of 24%. The current stock price is $49. Calculate the probability that the stock price is at least $177 in 9 years. (A) 0.3094 (B) 0.3032 (C) 0.297 (D) 0.2908 (E) 0.3156
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