1. Provide basic introduction to important notions: financial instruments such as options and

derivatives and related elementary methods. Cash flows, discounting and the term structure of interest rates are studied at an elementary level.

2. Learn statistical techniques and application areas in returns and there on in stock prices. Learn Statistical measures for their location, dispersion and skewness which all have

important economic interpretations, and the relevant statistical approaches to estimate them

will be carefully introduced.

3. Measuring the risk associated with for example,

Volatility and it is primarily related to the standard deviation and value-at-risk, by definition, which requires the study of quantiles and their statistical estimation.

4. Learn principle of no-arbitrage, the principle of risk-neutral pricing and the relation of

these notions to probability, calculus, particularly to an *equivalent martingale. *Studying them in the most elementary form or simply by examples.

5. Learn Discrete Time Processes: Binomial Trees

6. Learn Continuous Time Processes: Brownian motion, Ito Calculus, Black–Scholes pricing formula for a European call option and its statistical aspects and analysis.