Question: Apply Ito's Lemma to show that given dXt =adt + bdZt where a and b are constant (a). (5 marks) FeX-t solves dF =

Apply Ito's Lemma to show that given dXt =adt + bdZt where a and b are constant (a). (5 marks) F = eXt-t

Apply Ito's Lemma to show that given dXt =adt + bdZt where a and b are constant (a). (5 marks) FeX-t solves dF = (- / +a + b) Fdt +bFdZt (b). (5 marks) F = 2X-t solves dF = (26 - 1+2a)Fdt + 2bFdZt

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