Option Pricing in Continuous Time Makes Use of Wiener Processes $W _ { t }$

question 8

Multiple Choice

Option pricing in continuous time makes use of Wiener processes. Which of the following is not a property of a Wiener process $W _ { t }$ , given $W _ { 0 } = 0$ ?

• A) The process has independent increments \(W _ { t } - W _ { s }\) , for \(t > s\) .
• B) Increments are normally distributed.
• C) For each \(t\) , \(W _ { t }\) is normally distributed with mean zero and variance \(t ^ { 2 }\) .
• D) The process \(\left( W _ { t } \right)\) is a symmetric random walk around zero.

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