Question: Let Wt be aWiener process. Consider the geometric process St again: St = S0e(1/2 2)t+Wt (a) Calculate dSt. (b) What is the expected rate of

Let Wt be aWiener process. Consider the geometric process St again:
St = S0e(μ−1/2 σ2)t+σWt
(a) Calculate dSt.
(b) What is the "expected rate of change" of St?
(c) If the exponential term in the definition of St did not contain the term, what would be the dSt? What would then be the expected change in St?

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