# FxPaul

Math in finance or vice versa

## Stochastic process

As Wikipedia suggests, a stochastic process is a random process, the counterpart to a deterministic process. For our simple tasks all we need is a time series, i.e. for each moment of time we have only one random value, or price: $P(t)$. The process has a definite starting point $P(0)$ but its further evolution has some degree of uncertainty described by probability distribution.

A lot of types of stochastic processes has been studied in mathematical literature. In this article I use only Itō processes as they provide quite good approximation of price dynamics.