Question: Create a Matlab code modeling trajectories of a stochastic volatility process dX = (r q)Xdt + V, X, dW t dV = a(V-V)dt +

Create a Matlab code modeling trajectories of a stochastic volatility process dX = (r q)Xdt + V, X, dW t dV = a(V-V)dt + bv, dW21 where process starts at Xo=100, Vo=0.3, and parameters r=0.05, q=0.01,a=0.44, b=0.1, c=0.95, V = 0.25. Brownian motions W and W2 are independent. 2t Consider a period T=2 years with 250 steps per trajectory and 50,000 trajectories. Plot the trajectories of X and V and submit the printouts.

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