Which of the following is true when the stock price follows geometric Brownian motion
A) The future stock price has a normal distribution
B) The future stock price has a lognormal distribution
C) The future stock price has geometric distribution
D) The future stock price has a truncated normal distribution
Correct Answer:
Verified
Q6: A variable x starts at 10 and
Q7: A variable x starts at zero and
Q8: A variable x starts at 10 and
Q9: If a variable x follows the process
Q10: The variance of a Wiener process in
Q12: The process followed by a variable X
Q13: A stock price is $20.It has an
Q14: If a stock price follows a Markov
Q15: When a stock price,S,follows geometric Brownian motion
Q16: If e is a random sample from
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents