These lecture notes are based on a graduate course given for several years at Vilnius University as part of the master program Financial and Actuarial Mathematics. They are intended to give a short introduction to continuous-time financial models including Black--Scholes and interest rate models. Some basic knowledge of stochastic integration and differential equations theory is preferable, although, formally, all the preliminary information is given in part 1 of the lecture notes.
 

• About continuous-time stochastic models of financial mathematics
• Black-Sholes model and interest rate models
• Requiring a minimum knowledge of stochastic integration and stochastic differential equations