Entered Answer Preview Message Operands of '*can't be lists (t,a)Ft (1 point) Suppose that the random process Z= Z(1) is defined by the Ito process dz(t) = a dt + b dz, where z is a standard Wiener process and a and b are constants. Suppose the process Y(t) is defined by Y(t) = F(t, 2(0), where F(t, x) is a smooth function of variables t and X. This problem finds the Ito equation satisfied by Y(t). Define f(t, x) = F(t, at +hx). Then f is a smooth function of variables t and x, and fi = (t,a)Ft (Type F, as Ft, Fx as FX) fix = (Type Fxx as FXX ) After applying the version of Ito's lemma in the form, df = (f+ fxx)dt +f;dz the stochastic differential equation that is satisfied by Y = F(t, Z) = f(t,z) is dY = dt+ dz This is another version of Ito's lemma Entered Answer Preview Message Operands of '*can't be lists (t,a)Ft (1 point) Suppose that the random process Z= Z(1) is defined by the Ito process dz(t) = a dt + b dz, where z is a standard Wiener process and a and b are constants. Suppose the process Y(t) is defined by Y(t) = F(t, 2(0), where F(t, x) is a smooth function of variables t and X. This problem finds the Ito equation satisfied by Y(t). Define f(t, x) = F(t, at +hx). Then f is a smooth function of variables t and x, and fi = (t,a)Ft (Type F, as Ft, Fx as FX) fix = (Type Fxx as FXX ) After applying the version of Ito's lemma in the form, df = (f+ fxx)dt +f;dz the stochastic differential equation that is satisfied by Y = F(t, Z) = f(t,z) is dY = dt+ dz This is another version of Ito's lemma