epsilon <- c(0,rnorm(100)) S <- c(20,rep(0,100)) DS <- rep(0,101) for(i in(1:100)) { DS[i+1] <- 0.0014*S[i] + 0.02*S[i]*epsilon[i+1] S[i+1] = S[i] + DS[i+1] } x <- seq(0,100) xx <- as.data.frame(cbind(x, epsilon, DS, S)) plot(x, S, type="l", xlab="Periods", ylab="Stock price") points(x,S)