Stochastic Processes and Stochastic Calculus
摘要
This chapter introduces the key concepts of stochastic processes and stochastic calculus. Stochastic processes allow us to model the evolution of economic phenomena as a sequence of random variables indexed by time. Stochastic calculus, in turn, provides the mathematical framework to manipulate and analyze these processes. Together, these theories offer powerful tools for understanding and modeling complex economic dynamics, particularly in asset pricing, where uncertainty and time play a central role.