Question
Suppose you are high frequency trading of stocks, if the current price of the stock is...
Suppose you are high frequency trading of stocks, if the current price of the stock is 5% higher than the purchase price then you will buy. Suppose that a stock follows a Standard Geometric Brownian Motion lifted by the current market price of $20? What is the probability that the stock price is ready to buy after T units of time later? Evaluate for for multiple values of T and the plot the distribution with respect to T.
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