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Let Wt be a Brownian motion and Rt be an It process satisfying the stochastic differential equation (The process Rt is used to model the

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Let Wt be a Brownian motion and Rt be an It process satisfying the stochastic differential equation (The process Rt is used to model the spot interest rate in the Vasicek interest rate model.) a) Use It formula to calculate d (e2t R (b) Integrate the equation to find 0 (c) Find ER] and Var(Ri). What is the distribution of Rt'? Let Wt be a Brownian motion and Rt be an It process satisfying the stochastic differential equation (The process Rt is used to model the spot interest rate in the Vasicek interest rate model.) a) Use It formula to calculate d (e2t R (b) Integrate the equation to find 0 (c) Find ER] and Var(Ri). What is the distribution of Rt

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