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Stock ABC Is Currently Trading at 100 μ=0\mu = 0 And σ=0.40\sigma = 0.40

Question 2

Multiple Choice

Stock ABC is currently trading at 100. The stock has lognormal returns with with μ=0\mu = 0 and σ=0.40\sigma = 0.40 . What is the 95% confidence interval for the stock price in 3 months?


A) (21.6,178.4) ( 21.6,178.4 )
B) (67.6,148.0) ( 67.6,148.0 )
C) (45.7,219.0) ( 45.7,219.0 )
D) Cannot be calculated from the given information.

Correct Answer:

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