Martingales and Stochastic Calculus with Applications to Finance

Convener(s)

 
Name:  Prof Subhamay Saha Prof. Chandan Pal
Mailing Address: Associate Professor,
Department of Mathematics,
IIT Guwahati, Assam, 781039.
Associate Professor,
Department of Mathematics,
IIT Guwahati, Assam, 781039.
Email: saha.subhamay at iitg.ac.in cpal at iitg.ac.in

Most real life phenomena evolve in a random fashion. In order to model such random evolution, we need the mathematical tool called stochastic processes. Martingales form a very important class of stochastic processes. In this advanced instructional school, we would like to cover the basics of discrete and continuous parameter martingales. 
Another very important tool in probability theory is stochastic calculus. During the school the students will be introduced to stochastic calculus. First they will learn about Brownian motion, followed by definition and properties of Ito integration. 
The focus will then shift to the applications of the above topics to the domain of mathematical finance. In this part the students will be introduced to various financial instruments. They will learn about option pricing theory both in discrete and continuous time. Finally they will be introduced to portfolio optimization theory.  
Martingales and stochastic calculus part will have approximately 20 hours of lectures and finance part will have approximately 16 hours of lectures. This school is targeted towards post graduate and Ph.D students of science and engineering. Basic knowledge of probability and measure theory will be assumed.   

Dates: 

Monday, May 11, 2026 - 09:00 to Saturday, May 23, 2026 - 21:00

Venue: 

Venue Address: 

 

 Department of Mathematics,
Indian Institute of Technology Guwahati,
Assam, 781039.

 

 

 

BITS Pilani, KBirla Goa Campus NH-17B, Zuarinagar

 

Goa-403726

 

 

 

 

 

 

Venue State: 

Venue City: 

PIN: 

781039

Syllabus: 

 

Name of the Speaker with affiliation

No. of Lectures 

Detailed Syllabus

 

Dr. Koushik Saha

IIT Bombay

 

 

6 hrs

Definition and examples of discrete parameter martingales; Doob-Meyer decomposition, optional stopping theorems; martingale convergence theorems, uniform integrability.

 

Prof. Parthanil Roy

IIT Bombay

 

 

6 hrs

Definition of Brownian motion, sample path properties; strong Markov property, reflection principle; Definition and examples of continuous parameter martingales, Doob-Meyer decomposition, continuous square integrable martingales, quadratic variation, exponential martingales.

 

Dr. Manjunath Krishnapur

IISc. Bangalore

 

6 hrs

Definition of Ito integration, properties of Ito integral, Ito’s isometry, Ito-Doeblin formula; Existence and Uniqueness of stochastic differential equations, Feynman-Kac formula.

 

Prof. Siddhartha P. Chakrabarty

IIT Guwahati

 

6 hrs

Introduction of financial derivatives: forwards, futures, options. No arbitrage principle, put-call parity; Markowitz mean-variance portfolio optimization, efficient frontier, Capital asset pricing model.

 

 

Dr. Subhamay Saha

IIT Guwahati

 

6 hrs

Option pricing theory in discrete-time: Binomial model, pricing of European and American Options, finite market model, fundamental theorems of asset pricing.

 

Dr. Chandan Pal

IIT Guwahati

 

6 hrs

Option pricing theory in continuous-time: Black Scholes Merton model, derivation and solution of Black Scholes pde, risk-neutral pricing, Girsanov’s theorem and Martingale representation theorem, fundamental theorems of asset pricing.

 

 

References:

1. D. Williams, Probability with Martingales, Cambridge University Press, 1991.

2. R. Durrett, Probability: Theory and Examples, Cambridge University Press, 2019.

3. I. Karatzas and S. E. Shreve, Brownian Motion and Stochastic Calculus, Springer, 1998.

4. P. Baldi, Stochastic Calculus: An Introduction through Theory and Exercises, Springer, 2017.

5. M. Capinski and T. Zastawniak, Mathematics for Finance: An Introduction to Financial Engineering, Springer, 2011.

6. S. E. Shreve, Stochastic Calculus for Finance I: The Binomial Asset Pricing Model, Springer, 2004.

7. S. E. Shreve, Stochastic Calculus for Finance II: Continuous-Time Models, Springer, 2004.

 

Tutorial Assistants:

S. No.

Name

Affiliation

1

Bivakar Bose

IIT Guwahati

2

Amit Ghosh

IIT Guwahati

3

Pratim Dey

IIT Guwahati

 

 

Time Table: 

 

Day

Date

Lecture 1

(9.30–11.00)

Tea

(11.05 –11.25)

Lecture 2

(11.30–1.00)

Lunch

(1.05

2.25)

Tutorial

(2.30–3.30)

Tea

(3.35-3.55)

Tutorial

(4.00-5.00)

Snacks

5.05-5.30

 

 

(name of the speaker

 

(name of the speaker

 

(name of the speaker + tutors)

 

(name of the speaker + tutors)

 

Mon

11/05

DTM-1(KS)

 

BM&CTM-1 (PR)

 

KS+PD+AG

 

PR+PD+AG

 

Tues

12/05

DTM-2(KS)

 

BM&CTM-2 (PR))

 

KS+PD+AG

 

PR+PD+AG

 

Wed

13/05

DTM-3(KS)

 

BM&CTM-3 (PR)

 

KS+PD+BB

 

PR+BB+AG

 

Thu

14/05

DTM-4(KS)

 

BM&CTM-4 (PR)

 

KS+BB+AG

 

PR+BB+PD

 

Fri

15/05

SC-1(MK)

 

IFE-1(SPC)

 

MK+BB+AG

 

SPC+PD+BB

 

Sat

16/05

SC-2(MK)

 

IFE-2(SPC)

 

MK+PD+AG

 

SPC+BB+AG

 

SUNDAY: OFF

Mon

18/05

SC-3(MK)

 

IFE-3(SPC)

 

MK+AG+BB

 

SPC+BB+PD

 

Tues

19/05

SC-4(MK)

 

IFE-4(SPC)

 

MK+BB+PD

 

SPC+BB+AG

 

Wed

20/05

OPD-1(SS)

 

OPC-1(CP)

 

SS+PD+AG

 

CP+PD+BB

 

Thu

21/05

OPD-2(SS)

 

OPC-2(CP)

 

SS+PD+AG

 

CP+AG+BB

 

Fri

22/05

OPD-3(SS)

 

OPC-3(CP)

 

SS+PD+AG

 

CP+PD+BB

 

Sat

23/05

OPD-4(SS)

 

OPC-4(CP)

 

SS+BB+PD

 

CP+AG+BB

 

 

DTM- Discrete-time Martingales

BM&CTM – Brownian Motion and Continuous-time Martingales

SC- Stochastic Calculus

IFE- Introduction to Financial Engineering

OPD- Option Pricing in Discrete-time

OPC- Option Pricing in Continuous-time 

Full forms for the abbreviations of speakers and tutors:

PR: Parthanil Roy

KS: Koushik Saha

SS: Subhamay Saha

CP: Chandan Pal

SPC: Siddhartha P. Chakrabarty

MK: Manjunath Krishnapur

PD: Pratim Dey

AG: Amit Ghosh

BB: Bivakar Bose

 

 

 

 

Selected Applicants: 

 

 

Sr.n SID Full Name Gender Affiliation Position in College/ University University/Institute M.Sc./ M.A. Year of Passing M.Sc./ M.A Ph.D. Degree Date
1 67360 Ms. Sanjava Reena Govindbhai Female Department Of Mathematics, Sardar Patel University PhD Department of mathematics, Sardar Patel University 2022  
2 67388 Mr. Ashutosh Kasaudhan Male Indian Institute of Technology (BHU) Varanasi PhD Indian Institute of Technology Bhubaneswar 2024  
3 67390 Mr. Gaurav G Kottari Male Shiv Nadar Institute of Eminence PhD Student Mangalore University 2022  
4 67403 Ms. Shikha Khatri Female Indian Institute of Technology, Roorkee PhD Hemvati Nandan Bahuguna Garhwal University 2022  
5 67408 Mr. Sougata Das Male IIT KHARAGPUR PhD Student IISER KOLKATA 2025  
6 67413 Ms. Shalini Beniwal Female Indian Institute of Technology Jammu PhD Student Panjab University, Chandigarh 2022  
7 67419 Mr. Mohit Lamba Male Central University of Punjab Research Scholar (Ph.D.) Central University of Punjab 2022  
8 67458 Mr. Shyan Ghosh Male Indian Institute of Technology Bhilai Ph.D. Student University of Calcutta 2022  
9 67460 Mr. Akram Khan Male Indian Institute of Technology Roorkee PhD Indian Institute of Technology Kharagpur 2024  
10 67465 Ms. Khushi Anil Mittal Female Indian Institute of Technology, Indore Msc Student Indian Institute of Technology, Indore 2026  
11 67466 Ms Samra Naaz Female Indian Institute of Science Education and Research Bhopal Integrated PhD Student Indian Institute of Science Education and Research Bhopal    
12 67470 Ms. Naina Aggarwal Female Indian Institute of Technology, Roorkee Ph.D Indian Institute of Technology, Roorkee 2025  
13 67472 Mr. Harsh Tiwari Male Indian Institute of Technology Roorkee PhD Banaras Hindu University 2024  
14 67484 Ms. Kiranpreet Kaur Female Indian Institute of Technology Ropar PhD Panjab University M.Sc. 2023  
15 67500 Mr Suresh Mondal Male Indian Institute of Technology Roorkee PhD Indian Institute of Technology Kanpur 2025  
16 67502 Ms. Jyoti Dhiman Female IIT Bombay Project Associate M.Sc. 2025  
17 67505 Mr. Shubham Kumar Singh Male Indian Institute of Technology Bombay PhD IIT Patna 2023  
18 67518 Mr Dheeraj Sharma Male Indian Institute of technology tirupati MSc Student Indian institute of technology tirupati Appeared / Awaiting Result  
19 67548 Mr. Amit Kumar Behera Male National Institute of Technology Phd FAKIR MOHAN UNIVERSITY,BALASORE,ODISHA 2022  
20 67626 Ms. Shreya Pandey Female Indian Institute of Science Education and Research, Pune Int. PhD Student      
21 67627 Mr. Souvik Mondal Male IIT Madras Project Associate Indian Association for the Cultivation of Science (IACS) 2024  
22 67838 Mr. Keshav Kumar Male Indian Institute of Technology Bombay PhD Indian Institute of Science Education and Research Bhopal 2021  
23 67856 Mr. Tushar Satishbhai Hemani Male IIT MADRAS PhD IIT DELHI 2025  
24 67875 Mr. Md Rahil Miraj Male Indian Statistical Institute, Kolkata M.Stat student Indian Statistical Institute, Kolkata Appeared / Awaiting Result  
25 67912 Ms. Jyoti Pandey Female Shailesh J. Mehta School of Management, IIT Bombay Research Scholar University of Delhi (M.Com) 2019  
26 67914 Mr. Shaswat Bhaskar Male Indian Statistical Institute Kolkata MSc Student Indian Statistical Institute Appeared / Awaiting Result  
27 67984 Mr. A Vignesh Male Bharathiar University PhD Student Bharathiar University, Coimbatore -46, India 2023  
28 67993 Mr. Dinesh Karthik Mulumudi Male Indian Institute of Science Education and Research (IISER) Pune 4th Year BS-MS Student Not Applicable    
29 68047 Mr. Kaustabh Roy Male Indian Institute of Technology (IIT) , Kanpur M.Sc. Student in Statistics Indian Institute of Technology(IIT) , Kanpur Appeared / Awaiting Result  
30 68071 Mr. Saptarshi Sinha Male Indian Statistical Institute PhD Indian Statistical Institute, Kolkata 2025  
  Local      
1 67433 Mr. Krishna Mani Nath Male Gauhati University PhD Student Gauhati University 2023  
2 67444 Mr Jugal Kishore Deka Male Gauhati University PhD student Gauhati University 2023  
3 67534 Mr Sayan Dhan Male IIT Guwahati PhD BHU 2025  
4 67603 Mr. Debottam Ghosh Male IIT Guwahati MTech Student IIT Hyderabad 2024  
5 67819 Ms Bratati Pal Female IIT Guwahati PhD student CALCUTTA UNIVERSITY 2022  
6 68073 Mr. Pranab Jyoti Hazarika Male Gauhati University PhD Tezpur Central University 2020  
  Waitlisted      
1 67636 Mr Santhakumar V Male Indian Institute of Technology Bombay PhD Indian Institute of Technology Bombay 2025  
2 67407 Mr. Raj Karan Gupta Male Indian Institute of Technology Roorkee PhD Banaras Hindu University 2022  
3 67422 Mr. Poleen Kumar Male Indian Institute of Technology (BHU) PhD Guru Nanak Dev University, Amritsar 2020  
4 67423 Ms. Savita Chaturvedi Female Indian Institute of Technology (BHU) PhD Indian institute of Technology(Indian School of Mines) Dhanbad 2018  
5 67436 Mr. Agniva Dey Male Ramakrishna Mission Vivekananda Centenary College PhD West Bengal State University 2023  
6 67457 Ms. Rohini Bhagwanrao Pote Female Indian Institute of Technology Bhilai PhD Student Savitribai Phule Pune University 2021  
7 67586 Mr Harsh Jaiswal Male IIT Tirupati         
8 67822 Mr. Gaurav Kandpal Male IIT kharagpur        
9 67950 Ms. Saipriya Dubey Female Chennai Mathematical Institute        

 

 

 

 

How to Reach: 

TBA

School Short Name: 

mscaf

Last Date Application: 

Monday, March 31, 2025

School Type: 

AIS

Separate faculty form: 

0