1. Use Itos Lemma to evaluate d[ln(S)]. For the following four problems, use Itos Lemma to determine...

1. Use Itˆo’s Lemma to evaluate d[ln(S)].

For the following four problems, use Itˆo’s Lemma to determine the process followed by the specified equation, assuming that S(t) follows

(a) arithmetic Brownian motion, equation (8);

(b) a mean reverting process, equation (9); and

(c) geometric Brownian motion, equation (11).