Stochastic Processes & Finance
From Brownian motion to option pricing — where math meets markets.
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Studying stochastic processes, I kept seeing how naturally they connect to markets — prices themselves can be modeled as stochastic processes.
Key Ideas
- Brownian motion: continuous-time randomness
- Martingales: fair-game math at the heart of option pricing
- Itô’s lemma: the chain rule for stochastic calculus
A single post can belong to both “math” and “finance” — that’s exactly why this taxonomy exists.
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