Problem 12-05 (Algorithmic) The price of a share of a particular stock listed on the New...

Problem 12-05 (Algorithmic) The price of a share of a particular stock listed on the New York Stock Exchange is currently $42. The following probability distribution shows how the price per share is expected to change over a three-month period: Stock Price Change ($) Probability -1 0.10 0 0.05 1 0.20 2 0.30 3 0.10 4 0.05 5 0.20 Set up intervals of random numbers that can be used to generate the change in stock price over a three-month period. If required, round your answers to two decimal places. Stock Price Change Probability Interval -1 0.10 but less than 0 0.05 but less than +1 0.20 but less than +2 0.30 but less than +3 0.10 but less than +4 0.05 but less than +5 0.20 but less than With the current price of $42 per share and the random numbers 0.8661, 0.6547, 0.0507 and 0.6333, simulate the price per share for the next four 3-month periods. Random Number Price Change Ending Price Per Share 0.8661 $ 0.6547 $ 0.0507 $ 0.6333 $ What is the ending simulated price per share? $

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orchestra answered 1 year ago

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