D6) Finance Suppose that the stock price follows geometric Brownian motion dXt = 0.04 Xt dt + 0.2 Xt dWt. Write the probability density function for the distribution of the stock prices in 2 years if the current stock price is 80.

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter6: The Trigonometric Functions
Section6.4: Values Of The Trigonometric Functions
Problem 23E
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D6) Finance Suppose that the stock price follows geometric Brownian motion dXt = 0.04 Xt dt + 0.2 Xt dWt. Write the probability density function for the distribution of the stock prices in 2 years if the current stock price is 80.
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