The lognormal Property 12.3 (Equations 12.2 and 12.3, page 235) o It follows from this assumption that InpTInso 2 or nSr≈dlnS+| o Since the logarithm of s is normal, sr is lognormally distributed Options, Futures, and Other Derivatives, Sth Edition C 2002 by John C. Hull12.3 Options, Futures, and Other Derivatives, 5th Edition © 2002 by John C. Hull 3 The Lognormal Property (Equations 12.2 and 12.3, page 235) • It follows from this assumption that • Since the logarithm of ST is normal, ST is lognormally distributed ln ln , ln ln , S S T T S S T T T T −  −              + −             0 2 0 2 2 2  m s s  m s s or