Pre-requisite(s):
FINM3143 FINANCIAL MATHEMATICS or
FINM3003 FINANCIAL MATHEMATICS I (FOR FM STUDENTS)

Course Description:
1.  To introduce students to basic theory of discrete-time and continuous-time martingales including Brownian motion.
2.  To familiarise students with Ito integral, Ito’s formula and its applications, stochastic differential equations, and diffusion processes.
3.  To apply stochastic calculus in option pricing.