A stock sells today for $45. The price of the stock in a year is expected to be $50. The annual he volatility of the stock is 25%.
a. Calculate the probability that in sell for more than $60
b. Calculate the probability that in four years the stock will sell for less than $35
c. Calculate the probability that in four years the stock will sell for a price between $27 and $54.
d. You are 90% confident the stock price in four years will be between what two values?