Stock Price Forecasts And Stock Option Pricing

This dissertation studies some topics on stock price in stock market using mathematical model, which involves theories of SDE(stochastic differential equation) and stock market. The basic ideas due to applications of SDE in engineering.Chapter 2 focus on the fundamental problem how to construct suitable models to describe the behavior of stock price and some properties resulting from these models.Chapter 3 investigates the topics how to forecast stock price, in the light of, mathematical model and technical indices of stock.Chapter 4 is devoted to European options' pricing formula, according~to the exponential Brownian motion model, combining the knowledge about SDE and option's properties.