Show that the GARCH (1,1) model o = w+au-1 + Bo in equation (19.9) is equivalent to the stochastic volatility model dV = a(VL-V) dt +V dz, where time is measured in days, V is the square of the volatility of the asset price, and 

What is the stochastic volatility model when time is measured in years? (Hint: The variable - is the return on the asset price in time At. It can be assumed to be normally distributed with mean zero and standard deviation . It follows that the mean of 11-1 and are 0 and 30%, 1-1, respectively.)AppendixLO1

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a=1--, V = 1-a-B =2