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The closed-form solution of Black Scholes Dynamics $dS_t=S_t(\mu dt +\sigma dW_t$) is $$S_t=S_0 e^{(\mu -\sigma ^2/2) t+\sigma dW_t}.$$

The $-\sigma^2/2$ term is quite similar to the volatility drag when transforming an arithmetic return to a geometric return. Are there any relationship between the two?

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