Stochastic Calculus Simplified I - Ito's Lemma

Simplifying Complex Topics in Stochastic Calculus

Most people first meet Itô’s Lemma in finance, but it’s really just the calculus of random processes. If you’ve worked with time series or seen stock price models, you’ve already brushed shoulders with it.

This article will discuss Itô’s Lemma and its relation to financial time series. The aim is to help you understand the world of quantitative analysis …