This book provides an easily accessible introduction to SDEs, their applications and the numerical methods to solve such equations.

Moreover, the volume introduces readers to the modern benchmark approach that provides a general framework for modeling in finance and insurance beyond the standard risk-neutral approach.

This book provides an easily accessible, computationally-oriented introduction into the numerical solution of stochastic differential equations using computer experiments.

This book presents the necessary mathematical tools, followed by a thorough introduction to financial modeling under the benchmark approach, explaining various quantitative methods for the fair pricing and hedging of derivatives.

The functionals of multidimensional diffusions analyzed in this book are significant for many areas of application beyond finance.

The rich set of examples and problems integrated throughout this book will help readers gain a better understanding of where and how to apply Statistical Quality Control (SQC) tools.