ScienceGuy

T hese notes would be beneficial to individuals to understand the very basics of the Brownian Motion, which eventually would aid in understanding stochastic calculus. The notes have been made from the lectures of profbillbyrne.

  Notes have been made on the basis of lecture BEM1105X - Caltech. Course playlist can be found here

A derivative instrument is a contract which specifies the conditions under which a transaction will take place in the future. The price of the derivative depends on the price of another asset called as the underlying asset.

These financial instruments are not just interesting for traders and to deepen pockets but even from economics and research point of view, these instruments are fascinating.