Suppose you simulate the price path of stock HHF using a geometric Brownian motion model with µ = 0.1, o = 0.2, and time step At = 1/52 (weekly). Let St be the price of the stock at time t. If So = 100, and the first simulated (randomly selected) standard normal variable is e = -0.591, %3D what is the simulated return over the next week?

Suppose you simulate the price path of stock HHF using a geometric Brownian motion model with µ = 0.1, o = 0.2, and time step At = 1/52 (weekly). Let St be the price of the stock at time t. If So = 100, and the first simulated (randomly selected) standard normal variable is e = -0.591, %3D what is the simulated return over the next week?

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Description: Dear Tutor please help me out in this question, your efforts will be appreciated Suppose you simulate the price path of stock HHF using a geometric Brownian motion model withµ = 0.1, o = 0.2, and time step At = 1/52 (weekly). Let St be the price of t

MATLAB: An Introduction with Applications

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Question

Dear Tutor please help me out in this question, your efforts will be appreciated

Suppose you simulate the price path of stock HHF using a geometric Brownian motion model with
µ = 0.1, o = 0.2, and time step At = 1/52 (weekly). Let St be the price of the stock at time t.
If So = 100, and the first simulated (randomly selected) standard normal variable is e = -0.591,
what is the simulated return over the next week?
(a) -0.061
(b) -0.015
(c) 0.061
(d) -0.093

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