Suppose you own one share of a stock whose price changes according to a standard Brownian motion

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Suppose you own one share of a stock whose price changes according to a standard Brownian motion process. Suppose that you purchased the stock at a price b+c, c > 0, and the present price is

b. You have decided to sell the stock either when it reaches the price b + c or when an additional time t goes by

(whichever occurs first). What is the probability that you do not recover your purchase price?

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Introduction To Probability Models

ISBN: 9780443187612

13th Edition

Authors: Sheldon M. Ross

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Question Posted: Sep 06, 2024 04:03 AM

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Suppose you own one share of a stock whose price changes according to a standard Brownian motion

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Introduction To Probability Models

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