ifectony22

Starting at some fixed time, let S(n) denote the price of a certain Stock at the end of n additional weeks. It is well known that the ratio of stock prices S(n)/S(n-1) are independent and identically distributed lognormal random variables, n (greater or equals) to 1. Assume the parameters of this distribution as u=0.0165 and zigma=0.0730 Find

(i).. Probability that the stock price increases over each of the next 2 weeks.

(ii)..Probability that the price of the stock at the end of the 2 weeks is higher than today?

(i).. Probability that the stock price increases over each of the next 2 weeks.

(ii)..Probability that the price of the stock at the end of the 2 weeks is higher than today?