I have a question about simulating a SDE.
I want to simulate $dS=\alpha(K-S)dt+\sigma S dZ$ with use of a Euler-marayama scheme. The numerical scheme becomes: $S_{i+1}=S_{i}+\alpha(K-S_{i})dt+\sigma S_{i}\sqrt{dt}Z$.
But now I want to know the condition for when this method is stable, because my solutions blow up. I hope that anyone can help me out.