Quant, Finance, Stock Market, Data Science, Volatility.
SDE follows Brownian motion. One more thing to consider is when we travel from t to t+1 this t could be any value it could be less than 1 or greater than 1 or it can be 0.000001. If we plot this model in R, Let’s say with mean 0 and variance 1 with an initial value of 100. It’ll be as follow.