Question
1. Consider a stock and assume it follows a geometric Brownian motion dS = udt+Odz. Consider now a function G = G(S, t). i)
1. Consider a stock and assume it follows a geometric Brownian motion dS = udt+Odz. Consider now a function G = G(S, t). i) Use It'o's lemma to find the stochastic process dG followed by G. ii) Use It'o's lemma to find the stochastic process followed by G(S) = In S.
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321543084, 978-0321543080
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