Frequently Asked Questions In Quantitative Finance

Chapter 3: The Most Popular Probability Distributions 233

Normal

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

-4 -3 -2 -1 0 1 2 3 4

a = 0

b = 1

Lognormal

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

00.511.522.533.5 4

a = 0.4

b = 0.3