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Answer the next two questions based on the information given in the following Exhibit: Exhibit: The stock price S of an underlying security follows the

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Answer the next two questions based on the information given in the following Exhibit: Exhibit: The stock price S of an underlying security follows the geometric Brownian motion process dS=Sdt+Sdz, where z is a standard Wiener process. Then, 4. the process followed by S4 is a. dS4=(4+2)S4dt+4S3dz b. dS4=(4+62)S4dt+4S4dz c. dS4=S4dt+S4dz d. dS4=(+4)S4dt+Sdz 5. the process followed by G(S,t)=er(Tt)/S2 is a. dG=(322r)Gdt2Gdz b. dG=(2r)dt2Gdz c. dG=(322r)Gdt+Gdz

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