Show that the GARCH (1,1) model o;3=co+au,i,_1+,8o,3_1 in equation (22.9) is equivalent to the stochastic volatility model
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• Show that the GARCH (1,1) model o;3=co+au,i,_1+,8o,‘3_1 in equation (22.9) 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, ?
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