Given the Following Ito Process for a Stock $d S _ { t } = 0.2 S _ { t } d t + 0.4 S _ { t } d W$

question 9

Multiple Choice

Given the following Ito process for a stock: $d S _ { t } = 0.2 S _ { t } d t + 0.4 S _ { t } d W$ , what is the expected value of the stock after 3 years if the current price of the stock is $50?

• A) $71.67
• B) $86.40
• C) $91.11
• D) $115.82

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Definitions:

Voucher Register

A record that keeps track of all issued vouchers, which are documents authorizing payments, and their current status.

NSF Check

An NSF check is a check that cannot be processed due to insufficient funds in the account it's drawn on.

Personal Deposit

Funds that an individual places in a bank account for safekeeping, which can earn interest over time depending on the type of account.

Debit Memorandum

A document issued by a buyer to a seller indicating a reduction in the amount owed, typically due to returned goods or an overcharge.