Black Scholes, Stochastic Process, Options Trading, Financial Modelling, Differential Equations.
of a variable to evolve it over time. Definition 1 : Mathematically, it is defined as a family of random variables, { X(t): t ∈ T}, where t usually denotes time. That is, at every time, t, in the set T, a random number X(t) is observed. Example: Stochastic process with Bernoulli process: It is a