11.4 Modeling stock Prices in Finance >In finance, frequently we model the evolution of stock prices as a generalized Wiener Process ds=usdt +osd Also, assume prices are distributed lognormal and returns are distributed normal Options, Futures, and Other Derivatives, 4th edition@ 2000 by John C. Hull Tang Yincai, C 2003, Shanghai Normal University11.4 Options, Futures, and Other Derivatives, 4th edition © 2000 by John C. Hull Tang Yincai, © 2003, Shanghai Normal University Modeling Stock Prices in Finance ➢In finance, frequently we model the evolution of stock prices as a generalized Wiener Process Also, assume prices are distributed lognormal and returns are distributed normal dS = mSdt +Sdz