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Seminar paper from the year 2019 in the subject Mathematics - Stochastics, grade: A, University of Benin, language: English, abstract: The following work tries to examine and provide soultions to an array of equations, most notably the Brownian motion, the Ito-integral and their application to finance. In the context of this work chapter one deals with the introduction, unique terms and notation and the usefulness in the project work. Chapter two deals with Brownian motion and the Ito integral, whereas chapter three deals with stochastic differential equations. Chapter four handles the application of stochastic differential equations to finance, and, finally, chapter five concludes the project.
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