Q.2a What do you understand by a geometric Brownian motion process? Let S(t),t0 be a geometric Brownian motion process with drift parameter =0.12 and volatility parameter is calculated as follows: Add all digits of your student number and multiply the sum by 0.01. [For example, if your student number is 3832334 then for you would be 3+8+3+ 2+3+3+4=260.01=0.26. This means that each one of you will be using a different value of volatility parameter and hence your final answers may not necessarily be the same.] Find (i) P(S(2)>S(1)>S(0)), (ii) P(S(3)S(0)). Use the property of Brownian motion that increments over non-overlapping time intervals are independent]. [2+3+3]