Financial Derivatives/Notions of Probability Theory

Notions of Probability Theory Here we introduce the notions of probability theory essential for the understanding of the book. The interested reader is referred to more thorough accounts of probability theory. Useful distributions Discrete distributions For a thourough list of discrete distributions and their properties the interested reader is referred to Wikipedia on discrete distributions. Binomial Distribution The binomial distribution of parameters and Poisson distribution The poisson distribution with parameter , the intensity Continuous distributions