If a Variable X Follows the Process Dx = B

question 12

Multiple Choice

If a variable x follows the process dx = b dz where dz is a Wiener process,which of the following is the process followed by y = exp(x) .

• A) dy = by dz
• B) dy = 0.5b2y dt+by dz
• C) dy = (y+0.5b2y) dt+by dz
• D) dy = 0.5b2y dt+b dz

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