LIST OF FIGURES
2.1. The price of a stock over a two-day period.
2.2. The probability tree of the stock price over a two-day period.
2.3. The expectation tree of the stock price over a two-day period.
3.1. The tree of a standard random walk.
3.2. The binomial model of the stock price.
3.3. The binomial tree of the stock price.
3.4. The returns of a stock and a bond.
3.5. The payoff function of a call.
3.6. The payoff function of a put.
3.7. The payoff function of a strangle.
3.9. Constructing a short rate tree: step one.
3.10. Constructing a short rate tree: step two.
3.11. The complete short rate tree.
4.1. A sample path of standard Brownian motion (µ = 0 and σ = 1).
4.2. A sample path of Brownian motion with µ = 1 and σ = 1.
4.3. A sample path of Brownian motion with µ = −1 and σ = 1.
4.4. A sample path of Brownian motion with µ = 0 and σ = 2.
4.5. A sample path of Brownian motion with µ = 0 and σ = 0.5.
4.6. A path of standard Brownian motion reflected after hitting.
4.7. A path of standard Brownian motion reflected before hitting.
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