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You own one share of a stock. The price is 10. The stock price changes according to a geometric Brownian Motion process, with time measured
You own one share of a stock. The price is 10. The stock price changes according to a geometric Brownian Motion process, with time measured in months and coefficients =0 =2. Calculate the probability that: a. The stock reaches the price of 20 at some time within the next year. b. The stock reaches the price of 20 before it drops to 5. c. You will be able to sell the stock at 20 in a year if the price at the end of the first month is 7.
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