For Purposes of Option Pricing,when the Movement of a Stock

question 2

Multiple Choice

For purposes of option pricing,when the movement of a stock price follows a geometric Brownian motion,the stock price is said to follow which type of distribution?

• A) Bimodal
• B) Latin hypercube
• C) Lognormal
• D) Normal

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Definitions:

Ration Reimbursement

The allocation of financial resources for healthcare services based on pre-determined criteria, often as part of cost-control measures in healthcare settings.

Uninsurable

Refers to a person or risk that is not acceptable for insurance coverage due to high risk.

Free Rider Problem

A phenomenon where individuals benefit from resources or services without paying for them or contributing to their provision, leading to underfunding and potential depletion of those resources.

Healthcare

The organized provision of medical care to individuals or a community, including preventive, diagnostic, therapeutic, and rehabilitative services.