STATS WS 2008

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This is the homepage of the STATS-course of the VGSF-program. The page serves as a basis of communication between students and lecturer. It is updated on a regular basis.

Last update: 22.10.2008

The course is given by Prof. K. Pötzelberger and Prof. H. Strasser.

Contents

[edit] Nature of the course

The course is a classroom lecture which is supported by lecture notes.

There are sheets for the units presented by Prof. H. Strasser.

The written exams will be open book exams, meaning that the lecture notes without any additional comments may be used during the exam. The problems of the exams will be exercises of the notes or additional exercises posed in the classroom. The solutions should include extensive references to the notions contained in the notes.

[edit] Time table

[edit] Unit 1

Time: 4.10.2008, 9:00 - 12:00, HS II (IHS)

Lecturer: Pötzelberger

Subject: Conditioning

Keywords: Conditional probability, conditional expectation.

[edit] Unit 2

Time: 6.10.2008, 9:00 - 12:00, HS II (IHS)

Lecturer: Strasser

Subject: Martingale theory (discrete time)

Keywords: Examples, inequalities, limit theorems, Markov property, stopping times

[edit] Unit 3

Time: 10.10.2008, 9:00 - 12:00, HS II (IHS)

Lecturer: Pötzelberger

Subject: Applications to gambling

Keywords: ruin problem with one and two players, Wald's equation, boundary crossing problems

[edit] Unit 4

Time: 13.10.2008, 9:00 - 12:00, HS II (IHS)

Lecturer: Strasser

Subject: Single period finance

Keywords: no arbitrage theory, utility maximization, asset pricing, log-normal models, risk neutrality

[edit] Unit 5

Time: 18.10.2008, 9:00 - 12:00, HS II (IHS)

Lecturer: Strasser

Subject: Multiperiod finance

Keywords: self-financing trading, no arbitrage theory, martingale measures, binomial trees, asset pricing

[edit] Unit 6

Time: 20.10.2008, 9:00 - 12:00, HS II (IHS)

Lecturer: Pötzelberger

Subject: Stochastic processes with continuous time

Keywords: Poisson process, Wiener process, martingale properties, quadratic variation

[edit] Unit 7

Time: 25.10.2008, 9:00 - 12:00, HS II (IHS)

Lecturer: Strasser

Subject: Optional stopping and martingales (continuous time)

Keywords: basic facts on stopping times and martingales with continuous time

[edit] Unit 8

Time: 27.10.2008, 9:00 - 12:00, HS II (IHS)

Lecturer: Pötzelberger

Subject: Applications of optional stopping

Keywords: first passage problems, reflection principle, Markov property

[edit] Unit 9

Time: 8.1.2009, 9:00 - 12:00, HS II (IHS)

Lecturer: Strasser

Subject: Stochastic integration

Keywords: Stieltjes integration, Stieltjes calculus (integration by parts, transformation theorem), integrals w.r.t. martingales, semimartingales, truncation lemma

[edit] Unit 10

Time: 13.1.2009, 9:00 - 12:00, HS II (IHS)

Lecturer: Strasser

Subject: Stochastic calculus for continuous processes

Keywords: integration by parts, quadratic variation and covariation, Ito-formula, stochastic exponential for continuous processes, multivariable Ito-formula

[edit] Unit 11

Time: 15.1.2009, 9:00 - 12:00, HS II (IHS)

Lecturer: Strasser

Subject: Introduction to financial models with continuous time

Keywords: self-financing trading, partial-differential equation, Black-Scholes model, asset pricing via partial diferential equations

[edit] Unit 12

Time: 20.1.2009, 9:00 - 12:00, HS II (IHS)

Lecturer: Pötzelberger

Subject: Stochastic differential equations

Keywords:

[edit] Unit 13

Time: 22.1.2009, 9:00 - 12:00, HS II (IHS)

Lecturer: Strasser

Subject: Advanced martingale theory (continuous time)

Keywords: local martingales, Doob-Meyer decomposition, compensators, Levy characterization of Wiener process, integral extension to predictable processes, martingale representation

[edit] Unit 14

Time: 27.1.2009, 9:00 - 12:00, HS II (IHS)

Lecturer: Pötzelberger

Subject: Change of measures

Keywords:

[edit] Unit 15

Time: 29.1.2009, 9:00 - 12:00, HS II (IHS)

Lecturer: Pötzelberger

Subject: Application of measure change to finance

Keywords:

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