Author : Frederik S. Herzberg
Publisher : Springer
ISBN 13 : 3642331491
Total Pages : 125 pages
Book Rating : 4.6/5 (423 download)
Book Synopsis Stochastic Calculus with Infinitesimals by : Frederik S. Herzberg
Download or read book Stochastic Calculus with Infinitesimals written by Frederik S. Herzberg and published by Springer. This book was released on 2012-11-06 with total page 125 pages. Available in PDF, EPUB and Kindle. Book excerpt: Stochastic analysis is not only a thriving area of pure mathematics with intriguing connections to partial differential equations and differential geometry. It also has numerous applications in the natural and social sciences (for instance in financial mathematics or theoretical quantum mechanics) and therefore appears in physics and economics curricula as well. However, existing approaches to stochastic analysis either presuppose various concepts from measure theory and functional analysis or lack full mathematical rigour. This short book proposes to solve the dilemma: By adopting E. Nelson's "radically elementary" theory of continuous-time stochastic processes, it is based on a demonstrably consistent use of infinitesimals and thus permits a radically simplified, yet perfectly rigorous approach to stochastic calculus and its fascinating applications, some of which (notably the Black-Scholes theory of option pricing and the Feynman path integral) are also discussed in the book.