Stock ABC Is Currently Trading at 100 $\mu = 0$ And $\sigma = 0.40$

question 11

Multiple Choice

Stock ABC is currently trading at 100.The stock has lognormal returns with with $\mu = 0$ and $\sigma = 0.40$ .What is the 95% confidence interval for the stock price in 3 months?

• A) \(( 21.6,178.4 )\)
• B) \(( 67.6,148.0 )\)
• C) \(( 45.7,219.0 )\)
• D)Cannot be calculated from the given information.

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Definitions:

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