Recent content by swimming

A british bank note has a serial number consisting of two letters and 8 numbers. If the price of a future is equal to the sum of the 8 normally distributed randomly generated digits of the serial number (digits 0-9), what would the price of the at the money call option be?

i meant, if you buy the stock back at the end of the day what would be the risk and variance of the return?

i think you assume the stock follows a geometric brownian motion. i have no idea how to solve the problem though. the answer is obviously supposed to be entirely theoretical, but i don't even know where to start.

I have been given this problem by one of the guys I work with and cannot for the life of me figure it out. There is a stock with volatility \(\sigma\) and you are told to buy it over the course of the day. You are using the time weighted price over the course of the day as a benchmark...