Topics in Stochastic Analysis and Applications to Finance

Abstract

This research is concerned with the existence  a relationship between  Stochastic Differential Equations  (SDEs), Backward Stochastic Differential Equations  (BSDEs)  and Partial Differential Equations  (PDEs).

This research includes a major application of stochastic analysis, we study about applications to mathematical finance, and particularly, options as an example of financial derivatives and Black-Scholes method.