8-Stochastic Integrals Page 238 Wednesday, February 4, 2004 12:50 PM
238 The Mathematics of Financial Modeling and Investment Management■ Step 2 consists in defining stochastic integrals for elementary functions
as the sums of the products of the elementary functions multiplied by
the increments of the Brownian motion.
■ Step 3 extends this definition to any function through approximating
sequences.