A stochastic process is a colection of random variables defined on the same probability space. Please explain further what parts of this definition are escaping you.
What's the difference between stochastic and random? There is an anecdote about the notion of stochastic processes. They say that when Khinchin wrote his seminal paper "Correlation theory for stationary stochastic processes", this did not go well with Soviet authorities. The reason is that the notion of random process used by Khinchin contradicted dialectical materialism. In diamat, all ...
Stochastic Calculus for Finance I: Binomial asset pricing model and Stochastic Calculus for Finance II: tochastic Calculus for Finance II: Continuous-Time Models. These two books are very good if you want to apply the theory to price derivatives. Stochastic Differential Equations: An Introduction with Applications Bernt Oksanda.
An intuitive logical consequence of that interpretation is that the "law" or "underlying mechanism" that determines the stochastic process must be time-invariant. On the other hand, my understanding of the time homogeneous condition is that it explicitly states the time-invariance of the "law" or "underlying mechanism" of the stochastic process.
Now a "stochastic process" is simply a collection of many such variables, usually labeled by non-negative real numbers $t$. So $X_t$ is a random variable, and $X_t (\omega)$ is an actual number.
Systematic study of Markov chains and some of the simpler Markov processes including renewal theory, limit theorems for Markov chains, branching processes, queuing theory, birth and death processes, ...
Stochastic dominance provides a rigorous method to compare uncertain prospects without imposing restrictive assumptions on investor risk preferences, thus offering an alternative to traditional ...