Stochastic Processes and Calculus: An Elementary Introduction with Applications

This textbook gives a comprehensive introduction to shastic processes and calculus in the fields of finance and economics, more specifically mathematical finance and time series econometrics. Over the past decades shastic calculus and processes have gained great importance, because they play a decisive role in the modeling of financial markets and as a basis for modern time series econometrics. Mathematical theory is applied to solve shastic differential equations and to derive limiting res...