Quick Summary In this project we investigate the properties of financial stochastic processes. We first consider the implementation of the Black-Scholes model for determining the price of European call options on stock before then utilising the Vasicek model to calculate the future price of bonds. We discuss the background, benefits and drawbacks of both models before conducting our investigation and summarising our findings. 1 Introduction The Black-Scholes model is a mathematical model developed by the economists Fischer Black, Myron Scholes and Robert Merton which is widely used in the pricing of options contacts.