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A Geometric Brownian motion (GBM) is used to model a stock price: dS(t) = S(t)(bdt + dWt). In the above, b and are termed as
A Geometric Brownian motion (GBM) is used to model a stock price: dS(t) = S(t)(bdt + dWt). In the above, b and are termed as the drift and the volatility of the underlying stock. Write a Matlab code to do the following jobs: (1) Plot 100 paths; (2) compute its mean and variance of S(1).
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