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Explain the terms- Stock and Share
Stock
Ownership of a company represented by shares that are a claim on the company's earnings and assets.
Share
Unit of equity ownership in a company or in a mutual fund. This ownership is presented by a share certificate, which names company and the shareholder.
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The price of a non-dividend paying share, St, follows a geometric Brownian motion process. The current price of the share is £10 and volatility of the share price process is 12% pe
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