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    Finding highest possible value of x

    Stock prices are lognormally distributed. The current stock price is $82. The expected rate of return on the stock is 15 percent. The stock pays 3 percent continuous dividend. The volatility of the stock is 30 percent. The stock price can be really low in 9 months. Call this price to be X...
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    Black Scholes expected value and partial expected value

    A European call option on a stock has a strike price of 50 and will expire in 6 months. The underlying stock price follows a lognormal model. The current stock price is 46, the volatility of the stock is 30 percent, and expected rate of return on the stock is 15 percent (compounded...
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