probabilities for sitting duck, page-4

  1. 1,047 Posts.
    You had it correct in the first posting.

    Probability = N(Ln(q/spot) / Vt)

    where Vt = v*sqrt(t)

    Not P = N *nl ((q/spot)/(v *SQRT t))

    Using your example

    P = N [ (Ln {12/11.48} / 0.0876109)]

    P = N [0.5056478]

    P = probability of being above $12.00 at the date specified.

    Probability of being above is 1- Probability of being below, so Probabilty of being above is approx 0.306 or approx 31%, and the chance of NCP being below 12.00 in two weeks is approx 59% given your parameters.

    So Probability of being above in 2 weeks is 31%
    and Probability of being below in 2 weeks is 59%

    Having said all this I prefer the probability at anytime between now and two weeks, but then thats even heavier on the maths!.

    Hope this helps.



 
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