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University Of Memphis Operations And Supply Chain Management Assignment Help - The monthly risk

Question - Currently, shares of ABC Corp. trade at USD 100. The monthly risk neutral probability of the price increasing by USD 10 is 30%. And the probability of the price decreasing by USD 10 is 70%. What are the mean and standard deviation of the price after 2 months if price changes on consecutive months are independent? Mean Standard Deviation a. 70 11.32 b. 70 12.96 c. 92 11.32 d. 92 12.96

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