Learning Outcomes:
On completing this module students will be expected to be able to:
• Apply the results and formalism of Stochastic Calculus to analyze and solve problems in Finance
• Understand and work with Stochastic Processes, including Wiener Processes
• Model financial situations in terms of Stochastic Processes and tackle problems
• Pose a dynamic choice problem in terms of the stochastic dynamic programming approach, and to be familiar with methods of solving Bellman's equation for the value function.