Applications to Finance and Insurance
Mathematical finance is one of the most influential driving forces behind the research into stochastic processes. This is due to the fact that a significant part of the world’s financial markets relies on stochastic models as the underlying basis for valuation and risk management. But, perhaps more surprisingly, the financial market was also one of the main drivers that led to their discovery.
KeywordsAsset Price Risky Asset Call Option Implied Volatility Forward Rate
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