On the Mathematics and Economic Assumptions of Continuous-Time Models (Classic Reprint) - Couverture souple

Merton, Robert C.

 
9781333775865: On the Mathematics and Economic Assumptions of Continuous-Time Models (Classic Reprint)

Synopsis

This book explores the foundations of economic assumptions in continuous-time financial models. It delves into the mathematical and statistical properties of continuous-trading models, providing a rigorous framework for analyzing the dynamics of asset prices. The author carefully examines the implications of different assumptions about price changes, demonstrating how they impact the resulting models. By establishing a robust theoretical basis, this book enables readers to develop sophisticated financial models that accurately capture market behavior. Its insights are essential for practitioners seeking to understand the complexities of continuous-time finance and for researchers interested in advancing the field.

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