# Financial Derivatives/Notions of Probability Theory

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## Contents

# Notions of Probability Theory[edit]

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]

### Discrete distributions[edit]

For a thourough list of discrete distributions and their properties the interested reader is referred to Wikipedia on discrete distributions.

#### Binomial Distribution[edit]

The binomial distribution of parameters and

#### Poisson distribution[edit]

The poisson distribution with parameter , the *intensity*