Conditional expected stock price

If Current stock price =100 currency units, Expected return on the stock=0.20,Volatility=0.40 and dividend yield=0.03. Risk-free interest rate=0.08

What is the conditional expected price of the stock after one year given that price at the end of one year is >105 currency units?

In brief, what is E ( S t S t > 105 ) ? E(S_t|S_t >105)?

118,56 currency units 140,56 currency units 135.34 currency units 145.27 currency units 125.78 currency units 151.72 currency units

This section requires Javascript.
You are seeing this because something didn't load right. We suggest you, (a) try refreshing the page, (b) enabling javascript if it is disabled on your browser and, finally, (c) loading the non-javascript version of this page . We're sorry about the hassle.

0 solutions

No explanations have been posted yet. Check back later!

1 pending report

Vote up reports you agree with

×

Problem Loading...

Note Loading...

Set Loading...