I'm a bit confused about the wording of the two behaviors. Is p0 the value at the start of the day, or the value at the start of each minute? If the former, the second behavior doesn't make sense, because it's saying the stock just jumps between those values. But if the latter, aren't the two behaviors identical?
p0 is the value at the start of the day (not at the start of each minute). So after two minutes you might have (1.001)*(1.001)*p0 or (.999)*(1.001)*p0, etc. I think I see where the confusion is coming. I'll reword it a bit to clarify, lmk if it's still confusing after that.
I'm a bit confused about the wording of the two behaviors. Is p0 the value at the start of the day, or the value at the start of each minute? If the former, the second behavior doesn't make sense, because it's saying the stock just jumps between those values. But if the latter, aren't the two behaviors identical?
p0 is the value at the start of the day (not at the start of each minute). So after two minutes you might have (1.001)*(1.001)*p0 or (.999)*(1.001)*p0, etc. I think I see where the confusion is coming. I'll reword it a bit to clarify, lmk if it's still confusing after that.
It's clear now, thanks!