Model stock price probability
From the stock steps, you can now calculate the probability of each price of your stock. You will first calculate the cumalative probability using the
normdist()
function. Knowing the cumulative probability of the stock allows you to then calculate the probability between two prices, which will show you the most likely prices given your input values.Este ejercicio forma parte del curso
Financial Modeling in Google Sheets
Instrucciones del ejercicio
- Use
normdist()
with arguments for the natural log of the stock price in columnA
as x. - For the second argument, use the
natural log(stock price) + k * Time Horizon
. - For the third argument, use
volatility * square root (Time Horizon)
. - Use
TRUE
to see a cumulative probability for the last argument.
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