Prices are lognormal
Stock probability model
Expected return k
- K $= \mu - \frac{Volatility^2} {2}$
A range of values
$e^{(ln(Stock Price) + k \times Time) \pm (4 \times Volatility \times \sqrt{Time})}$
Apple's range of prices
Stock price steps to calculate on
= (Max - Min)/200
Entering the steps
- First step:
= Min Value - Next steps:
= Previous value + Stock Step
Finish the data table
