What are the probability distributions of the cash position

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A company's cash position, measured in millions of dollars, follows a generalized Wiener process with a drift rate of 0.1 per month and a variance rate of 0.16 per month. The initial cash position is 2.0.

(a) What are the probability distributions of the cash position after 1 month, 6 months, and 1 year?

(b) What are the probabilities of a negative cash position at the end of 6 months and 1 year?

Reference no: EM131237377

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