Compute the expected value of Log S_n+1/Sn, where Sn denoted the value of S&P500 at time n . Using u=1.0063 and d=.993738.

The answer should be in terms of p and q. Using Historical prices of the here. Use this estimate to compute p and q.

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- Mar 30th 2014, 06:07 PMMuddySocksExpected value of S&P 500
Compute the expected value of Log S_n+1/Sn, where Sn denoted the value of S&P500 at time n . Using u=1.0063 and d=.993738.

The answer should be in terms of p and q. Using Historical prices of the here. Use this estimate to compute p and q.