Recent content by J.P.

Thanks lavinia, you've given me a bit to think/read about.

Well I understand that the standard stock price model is given by the stochastic differential equation dSt = μStdt + σStdWt with solution St = S0exp(Wt + (-0.5σ2)t). So this would be a stochastic processes, depending on Brownian motion, and I suppose the times that investors needed access to...

Ok, thanks lavinia. Makes sense. The reason I ask is because I have only dealt with stochastic processes in discrete time, in the case of stock prices. For example, we may have a stock St where t=0,1,2, that can go up or down between time 0 and 1, and again up or down between time 1 and 2...

Thanks for the response SW VandeCarr. I'm not sure if I understand what "countable set" you mean. Certainly the ordered list of tuples would be countable. But I'm interested in Ω. Even if we are dealing with an ordered list of tuples (let's assume we are dealing with one dimension)...

Hello, Given a Brownian Motion process B(t) for 0≤t≤T, we can write it more explicitly as B(t,ω) where ω\inΩ, where Ω is the underlying sample space. My question is: what is the cardinality of Ω. I.e. what is |Ω|? My thoughts are that it is an uncountable set, based on the observation...