Financial mathematics

Question VI: Consider a risky asset X satisfying the following SDE: The process = {B-e-m : t > 0} corresponds to the discounting factor. Find the SDE satisfied by the discounted risky asset, y = x Hint: Sometimes, models include more than one source of uncertainty, e.g., more than one Brownian motion per asset. Also, models could include more than one asset. In these cases, one could use a multidi- mensional extension of Ito's lemma i) of 2 ax,ax, Question VI: Consider a risky asset X satisfying the following SDE: The process = {B-e-m : t > 0} corresponds to the discounting factor. Find the SDE satisfied by the discounted risky asset, y = x Hint: Sometimes, models include more than one source of uncertainty, e.g., more than one Brownian motion per asset. Also, models could include more than one asset. In these cases, one could use a multidi- mensional extension of Ito's lemma i) of 2 ax,ax