Financial Derivatives/Notions of Probability Theory
Appearance
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