Quant, Finance, Stock Market, Data Science, Volatility.
on asset at particular time interval. ΔS/S = Deterministic Part + Stochastic Part. Deterministic Part = Some Constant and Time Stochastic Part = Random Shock ΔS/S = µΔt + σΔW If we multiply S to equation we get GBM. dSt = µStΔt + σStΔWt µ and σ are constant and we need to solve for S. We can derive