Difference between normal and lognormal distribution

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Reference no: EM131178102

a. Explain the difference between a normal and a lognormal distribution as it pertains to stock prices and in same vein, explain

b. Why is choosing an exercise price on a protective put like deciding which deductible to take on an insurance policy?

c. Explain one advantage and one disadvantage to a covered call writer of closing out the position prior to expiration.

Reference no: EM131178102

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