Continuous-time Asset Pricing

Continuous-time asset pricing is a method used in finance to determine the value of assets, like stocks or bonds, by modeling their prices as evolving continuously over time. It uses mathematical tools from calculus and stochastic processes to account for unpredictable market movements and fluctuations. This approach helps investors and analysts understand how asset prices change moment-to-moment, considering risks and uncertainties, enabling more accurate valuation and better decision-making in dynamic markets.