Suppose that S follows equation (20.36) and Q follows equation (20.37). Use Itos Lemma to find the

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Suppose that S follows equation (20.36) and Q follows equation (20.37). Use Itˆo’s
Lemma to find the process followed by ln(SQ).

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Derivatives Markets

ISBN: 9789332536746

3rd Edition

Authors: Robert McDonald

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Question Posted: Aug 12, 2015 02:52 AM

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Suppose that S follows equation (20.36) and Q follows equation (20.37). Use Itos Lemma to find the

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If y ln SQ ln S ln Q then dy d ...View the full answer

Derivatives Markets

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