Financial Derivatives/Notions of Probability Theory
Notions of Probability Theory edit
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
Discrete distributions edit
For a thourough list of discrete distributions and their properties the interested reader is referred to Wikipedia on discrete distributions.
Binomial Distribution edit
The binomial distribution of parameters and
Poisson distribution edit
The poisson distribution with parameter , the intensity