AdvancedMultiple choice
Changing the measure · Part 3 of 4
Under the real-world measure a stock follows with and . The risk-free rate is .
Which of these is the same under P and Q?
- AThe expected stock price in one year
- BThe probability that the stock ends the year above today’s price
- CThe volatility σ, and which events have probability zero
- DThe distribution of the terminal price
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