12.6 The Expected Return The expected value of the stock price is T e The expected return on the stock is T 儿-2/2 hnE(S/S)]=u Options, Futures, and Other Derivatives, Sth Edition C 2002 by John C. Hull 612.6 Options, Futures, and Other Derivatives, 5th Edition © 2002 by John C. Hull 6 The Expected Return • The expected value of the stock price is S0 e mT • The expected return on the stock is m – s 2 /2    = m = m −s ln ( / ) ln( / ) / 2 0 2 0 E S S E S S T T