The current world financial scene indicates at an intertwined and interdependent relationship between financial market activity and economic health. This book e

Since the appearance of seminal works by R. Merton, and F. Black and M. Scholes, stochastic processes have assumed an increasingly important role in the develop

Presents inference and simulation of stochastic process in the field of model calibration for financial times series modelled by continuous time processes and n

This book offers an introduction to the mathematical, probabilistic and numerical methods used in the modern theory of option pricing. The text is designed for

The traditional Black-Scholes theory on pricing and hedging of European call options has long been criticized for its oversimplified and unrealistic model assum