The goal of the lecture is to given an overview over the way the financial
markets work and an introduction to some of the stochastic methods used. Selected
topics include:

1. Properties of the stochastic motions on the markets

2. Pricing of derivatives (products with a value derived from the price of other
products, e.g. stock options).

3. Risk control and optimization of trading strategies

In the financial world, many methods originating from physics are applied.
On one hand, the motions on the financial markets are stochastic. This leads to
analogies to statistical physics and the application of a variety of stochastic
methods. On the other hand, the financial industry is characterized by a dynamic
interplay between mathematical models, empirical observations, and a strive for
control. This leads to a need for the skill to extract verifiable predictions
from mathematical models, to empirically verify the predictions and, where
required, to refine the models.