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(7) Let dS = 3Sdt + 4SdW and let Z = S(t)e³(-) for all 0 ≤t≤T. Find the SDE for Z(t). The following answers are proposed. (a) dZ = 4ZdW (b) dZ=3Zdt +4ZdW (c) dZ - Zdt +4ZdW (d) dZ-Zdt +42dW (e) None of the above is correct Choose the best answer.

(7) Let dS = 3Sdt + 4SdW and let Z = S(t)e³(-) for all 0 ≤t≤T. Find the SDE for Z(t). The following answers are proposed. (a) dZ = 4ZdW (b) dZ=3Zdt +4ZdW (c) dZ - Zdt +4ZdW (d) dZ-Zdt +42dW (e) None of the above is correct Choose the best answer.

Linear Algebra: A Modern Introduction
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter7: Distance And Approximation
Section7.1: Inner Product Spaces
Problem 15BEXP
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(7) Let d.S = 3Sdt + 4SdW and let Z = S(t)e³(T-t) for all 0 ≤ t ≤T. Find the SDE for Z(t). following answers are proposed. The (a) dZ = 4ZdW (b) dZ3Zdt +4ZdW (c) dZ = Zdt + 4ZdW (d) dZ = −Zdt + 4ZdW (e) None of the above is correct Choose the best answer. (Select One) (a) O (b) (c) O (d) O (e) O N/A O
Transcribed Image Text:(7) Let d.S = 3Sdt + 4SdW and let Z = S(t)e³(T-t) for all 0 ≤ t ≤T. Find the SDE for Z(t). following answers are proposed. The (a) dZ = 4ZdW (b) dZ3Zdt +4ZdW (c) dZ = Zdt + 4ZdW (d) dZ = −Zdt + 4ZdW (e) None of the above is correct Choose the best answer. (Select One) (a) O (b) (c) O (d) O (e) O N/A O
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