What are the applications of stochastic processes in finance? How are stochastic processes used to model asset prices?

May 9, 2024 ... From a quantum information perspective, whenever a stochastic process can be exactly expressed as an ε-machine with a finite amount of ... Wu is with School of Mathematics and Informational Science,. Yantai ... Proposition 2: If a stochastic process is locally strongly uni- formly ... ... Stochastic Processes and their Ap- plications, 74 (2) 195-201, 1998. 21 ... gineering and Informational Science, 18 (4) 493-502, 2004. 26. Zazanis ... Probability in the Informational and Engineering Sciences ... Stochastics: An International Journal of Probability and Stochastic Processes (formerly Stochastics ... Mar 15, 2023 ... Abstract. Some mathematical models of informational signals and methods of the diagnostic system construction is considered. Different type of ... Applying sequential measurements yields classical stochastic processes whose informational properties are bounded by those of the underlying quantum process. While classical state-space reconstruction won't work on stochastic processes, such processes do have state-space representations [11], and, in the special ... Apr 4, 2006 ... The dynamic features are governed by the information flow, modeled as a stochastic volatility process, and generalize standard ARCH ... process's informational properties: hµ, E, and T. Fortu- nately, there are ... stochastic process [19]. Specifically, given a DQG. M = {U, P(s)}, the ... becomes surprisingly non-trivial (at least in continuous time). (More on these stochastic control aspects: Part I of the arXiv preprint: “On the informational ...