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Could you suggest some introductory books to stochastic calculus and derivative pricing?
A very simple introduction to stochastic calculus and to Black and Scholes' theory of option pricing is:
Elementary Stochastic Calculus With Finance in View by Thomas Mikosch
If you have a strong mathematical background and want a more sophisticated introduction, a very good choice would be:
Stochastic Calculus and Financial Applications by J. Michael Steele
What else can I help you with?
What is stochastic calculus?
The mathematical theory of stochastic integrals, i.e. integrals where the integrator function is over the path of a stochastic, or random, process. Brownian motion is the classical example of a stochastic process. It is widely used to model the prices of financial assets and is at the basis of Black and Scholes' theory of option pricing.
What Ito mean?
"Itō" can refer to several things, depending on the context. In Japanese, it means "thread" and is a common surname. In the context of mathematics, particularly in stochastic calculus, Itō refers to Kiyoshi Itō, a Japanese mathematician known for developing Itō calculus, which is fundamental in the theory of stochastic processes and financial mathematics. Itō's work has significant applications in areas like quantitative finance and option pricing.
How long does an introductory low price last in a penetration pricing strategy?
Six months
What has the author Mustafa Karakul written?
Mustafa Karakul has written: 'Combined pricing and procurement decisions in stochastic inventory control theory'
What kind of derivative contracts are contained within options pricing contracts?
There are many derivative contracts that are contained within options pricing contracts. A few examples include over-the-counter derivatives and exchange-traded derivatives.
What has the author Wulin Suo written?
Wulin Suo has written: 'Essays on derivative pricing models'
What has the author Anders B Trolle written?
Anders B. Trolle has written: 'Unspanned stochastic volatility and the pricing of commodity derivatives' -- subject(s): Econometric models, Petroleum industry and trade
What has the author JEAN-PHILIPPE BOUCHAUD written?
JEAN-PHILIPPE BOUCHAUD has written: 'THEORY OF FINANCIAL RISK AND DERIVATIVE PRICING: FROM STATISTICAL PHYSICS TO RISK MANAGEMENT'
What is Market Penetration Pricing?
Market penetration pricing is a pricing strategy that many companies use to enter a competitive market. Market penetration pricing is usually very low and coupled with consumer incentives to gather market share. This method if done on a massive scale can cause falling costs industry wide thus allowing further penetration by further allowing the reduction of introductory prices.
What has the author Manuel Ammann written?
Manuel Ammann has written: 'Credit risk valuation' -- subject(s): Credit, Credit ratings, Management, Risk management 'Pricing derivative credit risk' -- subject(s): Derivative securities, Prices, Mathematical models, Credit, Risk
How do you screw comcast?
A) Don't subscribe to their servicesB) When/If you do subscribe, you will be given some lower-than-normal introductory rate for a defined amount of time. Once that time is expired, phone in to cancel your services. You will be transferred to an "account specialist". Complain about the high prices, and they usually will lower your rate back to the introductory pricing. Repeat as necessary.
What has the author Ambar Sengupta written?
Ambar Sengupta has written: 'Pricing Derivatives (McGraw-Hill Library of Investment and Finance)' 'Gauge theory on compact surfaces' -- subject(s): Stochastic geometry, Mathematical physics, Quantum field theory, Topology
