Assume that McDonald’s log returns are normally distributed with mean and standard deviation equal to their estimates and that you have been made the following proposition by a friend: If at any point...

Assume that McDonald’s log returns are normally distributed with mean and standard deviation equal to their estimates and that you have been made the following proposition by a friend: If at any point within the next 20 trading days, the price of McDonald’s falls below 85 dollars, you will be paid $100, but if it does not, you have to pay him $1. The current price of McDonald’s is at the end of the sample data, $93.07. Are you willing to make the bet? (Use 10,000 iterations in your simulation and use the command set.seed(2015) to ensure your results are the same as the answer key)