Show that if E[x t ] = 0, we must have t = t .

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Show that if E[Δx_t] = 0, we must have μ_t = −λ_tθ.

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A First Course in Quantitative Finance

ISBN: 978-1108419574

1st edition

Authors: Thomas Mazzoni

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Question Posted: Dec 26, 2018 10:25 AM

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Show that if E[x t ] = 0, we must have t = t .

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Because z t has zero expectation t has to be t...View the full answer

A First Course in Quantitative Finance

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