LOGNORMAL MODEL FOR STOCK PRICES
geometric Brownian motion. Let S 0 denote the price of some stock at time t D0. We then follow the stock price at regular time intervals t D1, t D2;:::;t Dn. Let S t denote the stock price at time t. For example, we might start time running at the close of trading Monday, March 29, 2004, and let the unit of time be a trading
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