Itô calculus is a branch of mathematics that deals with the integration and differentiation of stochastic processes, particularly those that describe systems influenced by random forces. It is named after the Japanese mathematician Kiyoshi Itô, who developed these concepts in the context of stochastic analysis. At its core, Itô calculus provides tools for analyzing and solving stochastic differential equations (SDEs), which are differential equations in which one or more of the terms are stochastic processes.
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