dS u dt %3D S Integrating between time 0 and time T, we get ST = SoetT

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section10.8: Probability
Problem 17E
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How is this integratet. S = stock price, Mu =expected retrn. Mu question is where does the exponential come from

dS
u dt
%3D
S
Integrating between time 0 and time T, we get
ST = SoetT
Transcribed Image Text:dS u dt %3D S Integrating between time 0 and time T, we get ST = SoetT
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