Stochastic Models and Processes · 29. juillet 2023

Explore the world of financial volatility with quadratic variation—a tool capturing asset "bumpiness". In finance, much like assessing a hiking trail's roughness, we gauge stock price fluctuations. With roots in Brownian motion, this metric offers insights into market behaviors, aiding predictions in high-frequency trading and refining the Black-Scholes model. Dive deep into market terrain with this crucial quantitative tool. #BrownianMotion #QuadraticVariation #QuantitativeFinance.