For purposes of option pricing,when the movement of a stock price follows a geometric Brownian motion,the stock price is said to follow which type of distribution?

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When the movement of a stock price follows a geometric Brownian motion, the stock price is said to follow a lognormal distribution. This is because the log of the stock price follows a normal distribution, with the standard deviation of the log-returns of the stock price over time being the key parameter in option pricing models such as the Black-Scholes model.

For Purposes of Option Pricing,when the Movement of a Stock