2017-2018 / MATH0079-1

Stochastic process

Duration

20h Th, 10h Pr, 20h Proj.

Number of credits

 Master in mathematics (120 ECTS)6 crédits 

Lecturer

Yvik Swan

Language(s) of instruction

French language

Organisation and examination

Teaching in the first semester, review in January

Units courses prerequisite and corequisite

Prerequisite or corequisite units are presented within each program

Learning unit contents

Introduction to stochastic processes and stochastic integration
One-dimensional Brownian Motion


  • Motivation
  • Multivariate Normal Distribution
  • Processes with stationary independent increments
  • Brownian Motion : definition
  • Brownian Motion : construction
  • An overview of path properties
  • Markov property and applications
  • Continuous time martingales and applications
  • Skorokhod embedding (overview)
  • Donsker's theorem and applications (overview)
Feller processes


  • Basic setup
  • From Feller processes to infinitesimal description
  • From infinitesimal description to Feller processes
  • A few tools
  • Applications to Brownian motion
Stochastic integration


  • Motivation
  • The Itô integral
  • Itô's formula and applications
 
 

Learning outcomes of the learning unit

The objective is to offer the student the necessary tools to enter a very active but demanding research field. 

Prerequisite knowledge and skills

It is compulsory to have a solid background in mathematics (BA in mathematics). 
 
The course "Introduction to Stochastic Processes" is not a pre-requisite. 

Planned learning activities and teaching methods

Ex cathedra classes as well as exercise sessions

Mode of delivery (face-to-face ; distance-learning)

Face-to-face

Recommended or required readings

Most of the material is taken from 
 
Liggett, Thomas Milton. Continuous time Markov processes: an introduction. Vol. 113. American Mathematical Soc., 2010.
 
Additional material from 
 
Steele, J. Michael. Stochastic calculus and financial applications. Vol. 45. Springer Science & Business Media, 2012.

Assessment methods and criteria

Oral examination

Work placement(s)

Organizational remarks

Course taught in English; exercises and exam in French (or English)

Contacts

Université de Liège Département de Mathématique - zone polytech 1 12 allée de la découverte Bât. B37 pkg 33a B-4000 Liège Office : B37 0/68