Stochastic Processes: The Fundamentals

Summary Stochastic Processes: the Fundamentals of the Master Finance at the VU (also course for Financial Econometrics). This summary includes all course content that has been discussed in the lectures and tutorials. The summary contains the following topics: no-arbitrage pricing, risk neutral pricing, derivative pricing, binomial tree model, algebras and filtrations, markov processes, random variables, expectation and variance, random walk, Brownian motion, ito's lemma, Black-Scholes, Girsanov...