**STAT W4635y Stochastic Processes for Finance** *3 pts.* Prerequisites: *STAT W3105*, *W4105*, or equivalent. This course covers theory of
stochastic processes applied to finance. It covers concepts of Martingales,
Markov chain models, Brownian motion. Stochastic Integration, Ito's formula
as a theoretical foundation of processes used in financial modeling. It also
introduces basic discrete and continuous time models of asset price
evolutions in the context of the following problems in finance: portfolio
optimization, option pricing, spot rate interest modeling. CC/GS: Partial Fulfillment of Science Requirement.