In the Vasieck (1977) model, you are given that $d r _ { t } = \kappa \left( \theta - r _ { t } \right) d t + \sigma d W _ { t }$ where $k = 0.5$ , $\theta = 0.06$ , $\sigma = 0.10$ , and the current short rate of interest is $r _ { 0 } = 0.08$ . What is the expected standard deviation of the short rate of interest one year hence?
A) 0.08
B) 0.09
C) 0.10
D) 0.11

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The Answer of In the Vasieck (1977) model, you are given that $d r _ { t } = \kappa \left( \theta - r _ { t } \right) d t + \sigma d W _ { t }$ where $k = 0.5$ , $\theta = 0.06$ , $\sigma = 0.10$ , and the current short rate of interest is $r _ { 0 } = 0.08$ . What is the expected standard deviation of the short rate of interest one year hence?
A) 0.08
B) 0.09
C) 0.10
D) 0.11

In the Vasieck (1977) Model, You Are Given That drt=κ(θ−rt)dt+σdWtd r _ { t } = \kappa \left( \theta - r _ { t } \right) d t + \sigma d W _ { t }drt​=κ(θ−rt​)dt+σdWt​

In the Vasieck (1977) Model, You Are Given That $d r _ { t } = \kappa \left( \theta - r _ { t } \right) d t + \sigma d W _ { t }$