# Brownian motion and Ito's formula

Hi, I've attached 2 questions in one file. Thanks.

Question 1 hints:

Hint 1: you have a process Y and a function, the first instinct should be to try Ito.

Hint 2: what would the SDE of a martingale look like? Look at attached lecture note.

Question 2 hint:

Hint: use the integral version of Ito's formula.

https://brainmass.com/math/integrals/brownian-motion-formula-197743

#### Solution Summary

This provides an example of working with Brownian Motion and Ito's formula.

$2.19