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Compute the probability that the spot price is greater

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Question - Consider a stock whose price at time t is given by St and that follows a geometric Brownian motion (GBM). The expected return is 14% per year and the volatility is 63% per year. The current spot price is $55. Compute the probability that the spot price is greater than $60 in 7 months from now. Express your answer as a decimal number with two decimals.

Reference no: EM133061549

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