Assume today's stock price S(0) is $100, the daily log (continuously compounded) return has mean of 0.0 and standard deviation of 0.10 (10%), and tomorrow's stock price is lognormally distributed. What is the approximate probability that tomorrow's stock price will exceed $117.94?
Assume today's stock price S(0) is $100, the daily log (continuously compounded) return has mean of 0.0 and standard deviation of 0.10 (10%), and tomorrow's stock price is lognormally distributed. What is the approximate probability that tomorrow's stock price will exceed $117.94? A.about 1%; B.1.43%; C.4.46%; D.about 5%