Anybody know the stochastic differential equation (SDE), Pl help me explain that:
" for c(t,\widetilde{S}(t))
dc=\frac{dc}{dt}[dt]+\frac{dc}{dS}[dS]+\frac{1}{2}\frac{d^2 c}{dS^2}[dS]^2
dS=\mu S dt+\sigma S dz
[dS]^2=\sigma^2 S^2 dt"