8. A stock had closing price of $30 on the last trading day of 2019. During that year, the stock has an average annual drift of u = 0.08 and volatility o2 0.09. Suppose we decide that we hold the...

Extracted text: 8. A stock had closing price of $30 on the last trading day of 2019. During that year, the stock has an average annual drift of u = 0.08 and volatility o2 0.09. Suppose we decide that we hold the stock until it either falls to $25 or grows to $35. What is the expected amount of time we will hold this stock? Explain your solution.