Continuous-Time Finance

Continuous-Time Finance is a mathematical approach used in finance that models how prices of securities, like stocks and bonds, change over time without interruption. Instead of looking at prices at specific intervals (like daily or monthly), it treats time as a smooth flow, allowing for more precise calculations and predictions. This method is often used in option pricing, risk management, and portfolio optimization. By using sophisticated equations, it helps investors understand complex market behaviors and make informed decisions based on potential future price movements. Overall, it enhances the analysis of financial markets and investments.