Multiple Choice
Which of the following is true when the stock price follows geometric Brownian motion
A) The future stock price has a normal distribution
B) The future stock price has a lognormal distribution
C) The future stock price has geometric distribution
D) The future stock price has a truncated normal distribution
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q9: The process followed by a variable X
Q10: A variable x starts at 10 and
Q11: Which of the following gives a random
Q12: If a variable x follows the process
Q13: The variance of a Wiener process in
Q14: A variable x starts at zero and
Q15: When a stock price,S,follows geometric Brownian motion
Q16: A variable x starts at zero and
Q17: A variable x starts at 10 and
Q19: If e is a random sample from