Stochastic Calculus and Processes: Introduction (Markov, Gaussian, Stationary, Wiener, and Poisson) 

Thanks Gerard!

@Viswanadha Reddy, thank you!

Hello sir, Are you preparing for exam ?

Thanks Cristina!

The best would be to start with the Black Scholes's series. If you encounter a topic that does not make sense then please look it up in the Stochastic calculus playlist. The simplified Stochastic and quant finance series also would be a good place to start if you don't want to jump straight into the Black scholes. Good luck, and keep it up! many thanks!

Hello again! And you can generate the reference using this website: www.mybib.com/tools/harvard-referencing-generator Actually it searches the web as well to find the video!

real lol

many thanks for the comment! What particular graphic please?

hello! Great question as always! In most cases, we indeed see the stochastic process as sum of increments, so great observation; however, the definition of a stochastic process is ‘loose’, and this is on purpose because leaving it loosely defined helps view the process from various perspectives - e.g., it can be viewed as a collection of random variables, in terms of joint distribution of the process values in certain cases, and as ensemble of paths (e.g., fixed time interval say and what view the process as a random function). Index is usually time, but it can be other things. Index can also be a random variable - say gamma (we are going to cover this aspect at some point.) So the general definition covers a lot of different perspectives. In this particular case, what we are plotting is not Z_i, but the net position of a player who is playing a game on the outcome of a sequence of Z_i’s, so the stochastic process is the net position, sum of individual outcomes. Hope this helps!

@@quantpie it helps a great deal! It is nice to know that my notion of a stochastic process is narrow. For now, I have few examples and a limited understanding. That is why your lectures are so helpful. Looking forward to more examples and seeing the bigger picture! Thanks again

hope all is well! When you get a chance, please do check out the latest video - generalisation of Poisson. It gives some examples of processes with indices other than time: location of trees in a forest, stars in the universe.

@@quantpie You can count on it! Thank you for your efforts.

Hello, and many thanks for the comment! This is on the list to do, the material is not in shareable format, and we are working on ways to make it accessible. many thanks!

quantpie hi,can let us know your background like what u do and how u know so much math?