A stock is traded at $100 and the risk-free interest rate is 10% per annum with continuous compounding. In a risk-neutral world, what is the expected value of the stock price three month later? (Please round your answer to 4th decimal number)

A stock is traded at $100 and the risk-free interest rate is 10% per annum with continuous compounding. In a risk-neutral world, what is the expected value of the stock price three month later? (Please round your answer to 4th decimal number)

Name: A stock is traded at $100 and the risk-free interest rate is 10% per a
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Description: A stock is traded at $100 and the risk-free interest rate is 10% per annum with continuous compounding. In a risk-neutral world, what is the expected value of the stock price three month later? (Please round your answer to 4th decimal number)

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 8P: A stock is trading at $80 per share. The stock is expected to have a yearend dividend of $4 per...

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