Financial Derivatives/Notions of Probability Theory
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Notions of Probability Theory[edit | edit source]
Here we introduce the notions of probability theory essential for the understanding of the book. The interested reader is referred to more thorough accounts of probability theory.
Useful distributions[edit | edit source]
Discrete distributions[edit | edit source]
For a thourough list of discrete distributions and their properties the interested reader is referred to Wikipedia on discrete distributions.
Binomial Distribution[edit | edit source]
The binomial distribution of parameters and
Poisson distribution[edit | edit source]
The poisson distribution with parameter , the intensity