What is the ending simulated price per share


The price of a share of a particular stock listed on the New York Stock Exchange is currently $ 39. The following probability distribution shows how the price per share is expected to change over a three month period.

Stock Price Change($) Probability
-2 .05
-1 .10
0 .25
+1 .20
+2 .20
+3 .10
+4 .10

a. Set up intervals of random numbers that can be used to generate the change in stock price over a three-month period.

b. With the current price of $39 per share and the random numbers 0.1091, 0.9407, 0.1941, and 0.8083, simulate price per share for the next four 3month periods. What is the ending simulated price per share.

Request for Solution File

Ask an Expert for Answer!!
Basic Statistics: What is the ending simulated price per share
Reference No:- TGS0105095

Expected delivery within 24 Hours