A stock price follows geometric Brownian motion with an expected return of 16% and a volatility of 35%. The current price is $38. a) What is the probability that a European call option on the stock with an exercise price of $40 and a maturity date in six months will be exercised(b) What is the probability that a European put option on the stock with the same exercise price and maturity will be exercised?

Answer for the question:

A stock price follows geometric Brownian motion with an expected return of 16% and a volatility of 35%. The current price is $38. a) What is the probability that a European call option on the stock with an exercise price of $40 and a maturity date in six months will be exercised(b) What is the probability that a European put option on the stock with the same exercise price and maturity will be exercised?

is given in the attachment.

Explanation:

the answer is true.  i do believe this is the answer because of the amount of wrecks people get into each year.  if you double this with avoiding those so said wrecks, that would make you a "skilled" driver.

answer; trojan horse;