Geometric Brownian Motion (GBM) & Itô's Lemma

A common assumption in financial markets is that an asset's price follows a Geometric Brownian Motion (GBM). The GBM model assumes the asset price, denoted by \(S_t\), follows the following SDE: $$dS_t = \mu S_t dt + \sigma S_tdW_t$$$$\frac{dS_t}{S_t...