Black Scholes, Stochastic Process, Options Trading, Financial Modelling, Differential Equations.
variable. Mapping from sample space to the realization Note that, X(t,ω) (or simply X(t)) is a random process. X(t0,ω) is a random variable for fixed t0. X(t,ω0) is a real-valued function of t for fixed ω0. X(t0,ω0) is a real number for fixed t0 and ω0. A stochastic model is a tool for estimating