Answer: Lognormally distributed.

The correct answer is **C** because if a stock's continuously compounded return is normally distributed, the future stock price will follow a lognormal distribution. This relationship arises because the lognormal distribution is commonly used to model asset prices when returns are continuously compounded. The lognormal distribution ensures that prices remain positive, which aligns with the nature of asset prices. Options A and B are incorrect because the stock price does not follow a normal or uniform distribution in this context.

Author: LeetQuiz Editorial Team