Question 2. For an underlying whose price dynamic follows the following SDE d S(t) = u S(t)dt+o S(t)d W(t) Let X(t) = S(t)-1 Use It's lemma to determine the SDE which describes the price dynamics of X(t), assuming S(0) > 0. Question 2. For an underlying whose price dynamic follows the following SDE d S(t) = u S(t)dt+o S(t)d W(t) Let X(t) = S(t)-1 Use It's lemma to determine the SDE which describes the price dynamics of X(t), assuming S(0) > 0