Question: a. If and P ( rt ; t ) is a given function, using Ito's lemma derive the function for dP . b. If dx

a. If and P(rt; t) is a given function, using Ito's lemma derive the function for dP.

b. If dx = a dt + b dW and y = ln(x), using Ito's lemma find the expression for dy.

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