The following numbers were randomly generated from a standard normal distribution:
-0.25 0.3 1.5 -1.2 -1.65 1.5
Suppose a security follows a geometric Brownian motion with volatility parameter, sigma=0.2, and interest rate r=0.01. If the initial closing price is S0=s=50, compute six moresimulateddaily closing prices. For the daily increment in time we are using 1/252 year.
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