How is the stock price at time t + δ determined in the GBM model?
The stock price at time t + δ is calculated using the formula St+δ = Ste(μ−σ^2/2)δ + σ√δZ, where St is the stock price at time t, μ is the rate of return parameter, σ is the volatility parameter, δ is the time step, and Z is a standard normal random variate.