Merton (1973) extension to the Black-Scholes stochastic process
This class describes the stochastic process ln(S) for a stock or
stock index paying a continuous dividend yield given by
$$
d\ln S(t, S) = (r(t) - q(t) - \frac{\sigma(t, S)^2}{2}) dt
+ \sigma dW_t.
$$
Merton (1973) extension to the Black-Scholes stochastic process
This class describes the stochastic process ln(S) for a stock or stock index paying a continuous dividend yield given by $$ d\ln S(t, S) = (r(t) - q(t) - \frac{\sigma(t, S)^2}{2}) dt + \sigma dW_t. $$