How is this intergrating done, it says they integrate between time  0 and time T. S = stock price mu = expected return T= Time

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
icon
Related questions
Question

How is this intergrating done, it says they integrate between time  0 and time T.

S = stock price

mu = expected return

T= Time

If the coellicient of dz is zero, so that there is no uncertainty, then this model implies
that
AS = µS Ar
in the limit, as Ar0, so that:
dS = µS dt
%3D
or
dS
Su dt
Integrating between time 0 and time T, we get
S7 = SoekT
(14.5)
Transcribed Image Text:If the coellicient of dz is zero, so that there is no uncertainty, then this model implies that AS = µS Ar in the limit, as Ar0, so that: dS = µS dt %3D or dS Su dt Integrating between time 0 and time T, we get S7 = SoekT (14.5)
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
Algebra and Trigonometry (6th Edition)
Algebra and Trigonometry (6th Edition)
Algebra
ISBN:
9780134463216
Author:
Robert F. Blitzer
Publisher:
PEARSON
Contemporary Abstract Algebra
Contemporary Abstract Algebra
Algebra
ISBN:
9781305657960
Author:
Joseph Gallian
Publisher:
Cengage Learning
Linear Algebra: A Modern Introduction
Linear Algebra: A Modern Introduction
Algebra
ISBN:
9781285463247
Author:
David Poole
Publisher:
Cengage Learning
Algebra And Trigonometry (11th Edition)
Algebra And Trigonometry (11th Edition)
Algebra
ISBN:
9780135163078
Author:
Michael Sullivan
Publisher:
PEARSON
Introduction to Linear Algebra, Fifth Edition
Introduction to Linear Algebra, Fifth Edition
Algebra
ISBN:
9780980232776
Author:
Gilbert Strang
Publisher:
Wellesley-Cambridge Press
College Algebra (Collegiate Math)
College Algebra (Collegiate Math)
Algebra
ISBN:
9780077836344
Author:
Julie Miller, Donna Gerken
Publisher:
McGraw-Hill Education