What is the fractional equation method?
The fractional equation method, also known as the finite difference method, is a numerical approach to solve differential equations. It involves approximating continuous functions by discrete variables on a grid, and replacing derivatives with difference quotients to form algebraic equations.
What is a Semimartingale in finance?
Could you please explain to me in simple terms what a Semimartingale is in the context of finance? I've heard it mentioned in discussions about stochastic processes and financial modeling, but I'm not entirely clear on its definition and significance. Could you elaborate on its properties and why it's important in the world of finance?