Stochastic Finance

Intended for graduate students in mathematics, this textbook is an introduction to probabilistic methods in finance that focuses on stochastic models in real ti... » 

Intended for graduate students in mathematics, this textbook is an introduction to probabilistic methods in finance that focuses on stochastic models in real time. It is based on courses taught by the authors at Humboldt U. and Technical U. in Germany. The core of the work is a dynamic arbitrage theory presented in the second section, but they firs «