e-stat: Basic Stochastic Finance at School Level
Christian Mohn, Dietmar Pfeifer · COMPSTAT · 2002
This text shows possibilities how basic facts of mathematics of finance can be introduced at school level by using e-stat. The basic facts ground on the discrete option pricing theory in the one-period binomial-tree-model. A simple numerical example is used to explain the term of “arbitrage” and its importance to financial mathematics. The example leads into two interactive Java-applets which give an impression of the ability of computers to bring complex contents to a better understanding by interactivity. This text will also give an idea of how to teach basic elements of mathematical stochastics by using mathematics of finance such as probability and expectation.