Use Itos Lemma to evaluate dS1. For the following four problems, use Itos Lemma to determine the

Question:

Use Itˆo’s Lemma to evaluate dS−1.
For the following four problems, use Itˆo’s Lemma to determine the process followed by the specified equation, assuming that S(t) follows
(a) Arithmetic Brownian motion, equation (20.8);
(b) A mean reverting process, equation (20.9); and
(c) Geometric Brownian motion, equation (20.11).