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Generating a Lognormal distribution for a stock

  1. #1
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    Generating a Lognormal distribution for a stock

    Hi,


    I have a stock in which I want to create a lognormal distribution for. Specfically my boss has given me the current price $162.34, and the current volatility (16.2%). What I need to find out is what are the prices of the stock going to be when the current vol increases by 25% 50% 100% and 200%, and what the prices will be when vol decreases by the same critera but lognormally fitted. Really looking for some help, and believe a lognormal distribution should do it, but I forget how to do that.

  2. #2
    Forum Expert dangelor's Avatar
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    Re: URGENT Generating a Lognormal distribution for a specfic stock

    This may help...
    http://www.youtube.com/watch?v=9rMpraPPQ2A

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