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