A stock price is currently 40 assume that the expected


1. What is implied volatility ? How can it be calculated?

2. A stock price is currently $40. Assume that the expected return from the stock is 15% and that its volatility is 25%. What is the probability distribution for the rate of return (with continuous compounding) earned over a 2-year period?

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Financial Management: A stock price is currently 40 assume that the expected
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