Introduction to Stochastic Processes, Poisson Process, Brownian Motion, Martingales Present Value Analysis, Interest rate analysis, Market Model Specification problems. Arbitrage Theorem, Multi-period binomial Model, Block - Scholes formula. Valuing investments by expected utility, Portfolio selection problem, Capital Assets Pricing model, Rates of return, Single period and geometric Brownian motion, Mean-variance analysis of
risk - neutra-lpriced call options, Autoregressive models and mean regression, Other pricing options and applications.