Stochastic Processes in Continuous Time

Course content

This course examines mathematical concepts for stochastic calculus. The topics include

  • Introduction to continuous time stochastic processes
  • Definition and properties of Brownian motion
  • Semimartingales
  • Stochastic integration
  • Itô (change of variable) formula
  • Theorems for applications (e.g., Girsanov’s theorem)
Education

MSc Programme in Mathematics-Economics
MSc Programme in Mathematics
MSc Programme in Statistics
MSc Programme in Mathematics with a minor subject

Learning outcome

Knowledge:

  • Continuous time stochastic processes
  • Stochastic integrals
  • Itô formula and applications
  • continuous semimartingales
  • Stochastic differential equations

 

Skills: Ability to

  • Explain central concepts of continuous time of stochastic processes
  • Apply results from stochastic integration 
  • Apply Ito's formula
  • Apply theorems from stochastic calculus such as  Girsanov's theorem
  • Describe properties of stochastic differential equations

 

Compentencies: Ability to

  • Discuss and apply central methods and results from stochastic calculus 
  • Evaluate models based on stochastic integrals

4 hours of lectures pr week for 7 weeks
2 hours of exercises pr week for 7 weeks

See Absalon for a list of course literature.

Sandsynlighedsteori 2(Sand 2).
Academic qualifications equivalent to a BSc degree is recommended.

This course is equivalent to the first seven weeks of NMAK24001U Mathematical Finance

Continuous feedback during the course of the semester

Individual feedback can be received at the exercise classes upon active participation in exercise classes.

ECTS
7,5 ECTS
Type of assessment
Oral examination, 30 minutes (no preparation)
Aid
Without aids
Marking scale
7-point grading scale
Censorship form
No external censorship
Exam period

Several internal examiners

Re-exam

Same as the ordinary exam

Criteria for exam assessment

The student should convincingly and accurately demonstrate the knowledge, skills and competences described under Intended learning outcome.

Single subject courses (day)

  • Category
  • Hours
  • Lectures
  • 28
  • Preparation
  • 163
  • Theory exercises
  • 14
  • Exam
  • 1
  • English
  • 206

Kursusinformation

Language
English
Course number
NMAK24000U
ECTS
7,5 ECTS
Programme level
Full Degree Master
Duration

1 block

Placement
Block 1
Schedulegroup
A
Capacity
No limitation – unless you register in the late-registration period (BSc and MSc) or as a credit or single subject student.
Studyboard
Study Board of Mathematics and Computer Science
Contracting department
  • Department of Mathematical Sciences
Contracting faculty
  • Faculty of Science
Course Coordinator
  • Jesper Lund Pedersen   (6-6d6876736875437064776b316e7831676e)
Saved on the 14-02-2024

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