Stochastic calculus is a branch of mathematics that deals with processes that involve randomness or uncertainty. It extends classical calculus to include stochastic processes, which are mathematical objects that evolve over time in a probabilistic manner. Stochastic calculus is particularly useful in fields such as finance, economics, physics, and engineering, where systems are influenced by random factors. Key concepts and components of stochastic calculus include: 1. **Stochastic Processes**: These are mathematical objects that describe a collection of random variables indexed by time.
New to topics? Read the docs here!