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An Introduction to Probability Theory
[chapter]
2012
The Mathematics of Derivatives Securities with Applications in MATLAB
Any realistic model of a real-world phenomenon must take into account the possibility of randomness. That is, more often than not, the quantities we are interested in will not be predictable in advance but, rather, will exhibit an inherent variation that should be taken into account by the model. This is usually accomplished by allowing the model to be probabilistic in nature. Such a model is, naturally enough, referred to as a probability model. The majority of the chapters of this book will
doi:10.1002/9781118467398.ch1
fatcat:lyucbuj5ejf43n2ys7fznghyki