![subject](/tpl/images/cats/mat.png)
Mathematics, 21.12.2019 07:31 zhenhe3423
The price of a certain security follows a geometric brownian motion with drift parameter µ = 0.12 and the volatility parameter σ = 0.24.
(a) if the current price of the security is $40, find the probability that a call option, having four months until expiration and with a strike price of k = 42 will be exercised.
(b) in addition to the above information as in part (a) if the interest rate is 8%, find the risk-neutral arbitrage free valuation of the call option.
![ansver](/tpl/images/cats/User.png)
Answers: 2
![](/tpl/images/ask_question.png)
![](/tpl/images/ask_question_mob.png)
Another question on Mathematics
![question](/tpl/images/cats/mat.png)
Mathematics, 21.06.2019 14:40
Which graph represents the following piecewise defined function?
Answers: 2
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/mat.png)
Mathematics, 21.06.2019 18:00
What is the relationship between all triangles that can be drawn given the same three angles
Answers: 2
![question](/tpl/images/cats/mat.png)
Mathematics, 21.06.2019 20:00
Select the number of ways in which a line and a circle can intersect
Answers: 3
You know the right answer?
The price of a certain security follows a geometric brownian motion with drift parameter µ = 0.12 an...
Questions
![question](/tpl/images/cats/fizika.png)
![question](/tpl/images/cats/obshestvoznanie.png)
Social Studies, 18.03.2021 18:10
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/mir.png)
World Languages, 18.03.2021 18:10
![question](/tpl/images/cats/en.png)
![question](/tpl/images/cats/en.png)
English, 18.03.2021 18:10
![question](/tpl/images/cats/biologiya.png)
Biology, 18.03.2021 18:10
![question](/tpl/images/cats/istoriya.png)
History, 18.03.2021 18:10
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/es.png)
![question](/tpl/images/cats/mat.png)
Mathematics, 18.03.2021 18:10
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/istoriya.png)
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/mat.png)
![question](/tpl/images/cats/en.png)
![question](/tpl/images/cats/en.png)
![question](/tpl/images/cats/mkx.png)
![question](/tpl/images/cats/obshestvoznanie.png)
Social Studies, 18.03.2021 18:10