Assume some stock s is distributed according to a lognormal


Assume some stock, S, is distributed according to a lognormal distribution with an expected price of 150 and standard deviation equal to 0.40

You are interested in selling a put option with a strike price (X) equal to 120 that expires one year from now. You are unsure about what premium to charge the buyer of the put option. Ending price S =150.

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Financial Management: Assume some stock s is distributed according to a lognormal
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