**Financial processes, 2014/15 spring semester**

## Requirements for the second test

change of probabilty measures for stochastic processes, lemma between E and E tilda

Girsanov theorem

Which processes are martingale under the risk neutral measure? ( D(t)X(t), D(t)S(t) )

Martingale representation theorem

Chooser option

American call and put option

basic idea of Longstaff-Schwarz method

definition of the CDS contract, basic idea of the Gaussian copula

definition of the forward rates, what is the no-arbitrage condition for bond prices (D(t)B(t,T))

Theorems and methods from homeworks