You are stock price analyst for the company. You are given historical daily stock prices of your company from Day 1 to Day 700 (Assuming stock market trade daily). As- suming the stock price follows the Black-Scholes fråmework. Determine the historical annual volatility, ở of this stock. Next, estimate the expected annual rate of return &. Assuming this is non-dividend paying stock, simulate the daily stock price for the next 90 days with the estimated annual volatility, ô and expected annual rate of return, ôt. Then, simulate the daily stock price again for the next 90 days with 5%, 15%, 25% and 35% deviation of your estimated annual volatility (assuming no change in the estimated rate of return).

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