1.

Record Nr.

UNINA9910733724303321

Autore

Karandikar Rajeeva L

Titolo

Introduction to Stochastic Calculus / / by Rajeeva L. Karandikar, B. V. Rao

Pubbl/distr/stampa

Singapore : , : Springer Nature Singapore : , : Imprint : Springer, , 2018

ISBN

9789811083181

9811083185

Edizione

[1st ed. 2018.]

Descrizione fisica

1 online resource (XIII, 441 p.)

Collana

Indian Statistical Institute Series, , 2523-3122

Disciplina

519.2

Soggetti

Statistics

Probabilities

Statistical Theory and Methods

Probability Theory

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Nota di contenuto

Discrete Parameter Martingales -- Continuous Time Processes -- The Ito Integral -- Stochastic Integration -- Semimartingales -- Pathwise Formula for the Stochastic Integral -- Continuous Semimartingales -- Predictable Increasing Processes -- The Davis Inequality -- Integral Representation of Martingales -- Dominating Process of a Semimartingale -- SDE driven by r.c.l.l. Semimartingales -- Girsanov Theorem.

Sommario/riassunto

This book sheds new light on stochastic calculus, the branch of mathematics that is most widely applied in financial engineering and mathematical finance. The first book to introduce pathwise formulae for the stochastic integral, it provides a simple but rigorous treatment of the subject, including a range of advanced topics. The book discusses in-depth topics such as quadratic variation, Ito formula, and Emery topology. The authors briefly address continuous semi-martingales to obtain growth estimates and study solution of a stochastic differential equation (SDE) by using the technique of random time change. Later, by using Metivier–Pellaumail inequality, the solutions to SDEs driven by general semi-martingales are discussed. The connection of the theory with mathematical finance is briefly



discussed and the book has extensive treatment on the representation of martingales as stochastic integrals and a second fundamental theorem of asset pricing. Intended for undergraduate- and beginning graduate-level students in the engineering and mathematics disciplines, the book is also an excellent reference resource for applied mathematicians and statisticians looking for a review of the topic.