I's Leu. APRIL (2010 iT THS Paren Wes WwRitTen By Joree , A STedenT. THs iS Tite peaivatiow Foe THe Ltrs's cEemm Fon THE 2-D Ase. dx = dt + rlxt)dw ge . Ruienee Moaexs. deirr Remem Bex THAT THe Wiewen Peocess W Has THe Fokiwowina Poverty: Way (o, At) (Ny OTHER WweRDs W Forcows A WMoRmAL Dik MiB Te Wicd is woT CTATionany Beavse Wie VARMANCE CHAN GES OVER Time. We veciwe A Peocess Yr F(X,t). WE WANT To kwow WHat HAPfews To dP, To Po So We Bory NEED To APpey ovr KvowLEree From Econ 6002 | d?: OF dx + OF dt + 1 Orr (dt)* + ae (ae) + Set) qn ax ot oer Dat THS te Aw APPLIATion OF DIFFEREN Time 5 Using TiyeeR CRPER 2. we Cw iG@wore TEeMs oF Kiénern ORDER THAW att. de is samce, Thew (dt)* amo (dE nae even Smaccen . (dt) “xo dx.dt = (AMt) dt tree) div )at dxdt = Huet + Tt) dw dt 0 dw=Vae' Beavse Ww iS A wienee feocess . Ww N(0,dt) OL iv Oiseee Te Tea“asc Ww wpfo at)i ake cs K-dt = Pea ae a Fivacty, (acy. (ar) = (Audet re, edu)" a dt o hs =f GD = Wage yg + 2 Mace rttae) ded tong QT = (dx) xrdt. Parl =e df= QF dx+2F dt ++ (268 pee ax ot ,ordt + 4 Tice) ate dt = d?~- Fa Ox ot axe Hike) dt +TK, tae = d¥= 2F (Aude peut) du) +96 dé +1 Tie OF at Ox at im Ox dY¥> Ait) OF dt + Tht QE dwt BE dt +1 a fe Oxf Ox ROX at we 2 oe ReAenaveinG The TEeRms For dt sro dW. = ee a OF + OF + Le, a a + THe) Ig Be EOS CEMMA. aie sat wot THE FORMAL Phoor Bur it iS EvovGu f ee oon wot S THAT ‘Me HAVE LEARNED AMD IT Gooo Iv Ase THAT WE pom'T HAVE THE FORMULA ee i