Stochastic integral at time T
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I am more into programming, although I recently become interested in quantative finance. I am currently reading Kerry's Beck book regarding financial derivatives valuations and I found there this formula
As far as I rember integral is area under curve, does this formula imply that value of variable X at time T is equal to area under curve of stochastic variable? This doesn't make sense for me.
Thank you in advance!
integration stochastic-processes stochastic-calculus
asked Nov 14 at 23:26
MrNice
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up vote
-1
down vote
favorite
I am more into programming, although I recently become interested in quantative finance. I am currently reading Kerry's Beck book regarding financial derivatives valuations and I found there this formula
As far as I rember integral is area under curve, does this formula imply that value of variable X at time T is equal to area under curve of stochastic variable? This doesn't make sense for me.
Thank you in advance!
integration stochastic-processes stochastic-calculus
asked Nov 14 at 23:26
MrNice
1
add a comment |
up vote
-1
down vote
favorite
up vote
-1
down vote
favorite
I am more into programming, although I recently become interested in quantative finance. I am currently reading Kerry's Beck book regarding financial derivatives valuations and I found there this formula
As far as I rember integral is area under curve, does this formula imply that value of variable X at time T is equal to area under curve of stochastic variable? This doesn't make sense for me.
Thank you in advance!
integration stochastic-processes stochastic-calculus
asked Nov 14 at 23:26
MrNice
1
I am more into programming, although I recently become interested in quantative finance. I am currently reading Kerry's Beck book regarding financial derivatives valuations and I found there this formula
As far as I rember integral is area under curve, does this formula imply that value of variable X at time T is equal to area under curve of stochastic variable? This doesn't make sense for me.
Thank you in advance!
integration stochastic-processes stochastic-calculus
integration stochastic-processes stochastic-calculus
asked Nov 14 at 23:26
MrNice
1
asked Nov 14 at 23:26
MrNice
1
asked Nov 14 at 23:26
MrNice
1
asked Nov 14 at 23:26
MrNice
1
asked Nov 14 at 23:26
MrNice
1
1
add a comment |
add a comment |
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