Probability

Probability theory deals with models for random experiments, i.e. experiments where it is not possible to predict the outcome even if one has full control of the external circumstances. Many phenomena where random variation is involved can be described in terms of probabilities. In finance, random models are used e.g. for stock prices and option prices. After having completed the course you will possess the skills of probabilistic modelling of real world situations. The content of the course is an important ingredient of the theoretical base of further courses in the Analytical Finance program such as Actuarial Mathematics, Stochastic Processes and Statistical Inference.