Description
Introduction to the Mathematics of Finance (2nd Ed., 2nd ed. 2012)
Arbitrage and Option Pricing
Undergraduate Texts in Mathematics Series
Author: Roman Steven
Language: EnglishSubjects for Introduction to the Mathematics of Finance:
Approximative price 49.57 €
In Print (Delivery period: 15 days).
Add to cart the book of Roman StevenPublication date: 05-2014
288 p. · 15.5x23.5 cm · Paperback
Approximative price 68.56 €
In Print (Delivery period: 15 days).
Add to cart the book of Roman StevenPublication date: 04-2012
288 p. · 15.5x23.5 cm · Paperback
Description
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The Mathematics of Finance has been a hot topic ever since the discovery of the Black-Scholes option pricing formulas in 1973. Unfortunately, there are very few undergraduate textbooks in this area. This book is specifically written for advanced undergraduate or beginning graduate students in mathematics, finance or economics. This book concentrates on discrete derivative pricing models, culminating in a careful and complete derivation of the Black-Scholes option pricing formulas as a limiting case of the Cox-Ross-Rubinstein discrete model.
This second edition is a complete rewrite of the first edition with significant changes to the topic organization, thus making the book flow much more smoothly. Several topics have been expanded such as the discussions of options, including the history of options, and pricing nonattainable alternatives. In this edition the material on probability has been condensed into fewer chapters, and the material on the capital asset pricing model has been removed.
The mathematics is not watered down, but it is appropriate for the intended audience. Previous knowledge of measure theory is not needed and only a small amount of linear algebra is required. All necessary probability theory is developed throughout the book on a "need-to-know" basis. No background in finance is required, since the book contains a chapter on options.
New edition fully rewritten, re-organized, and slimmed down to make the book flow more smoothly
Classroom-tested for the past five years since the first edition
Includes additional material on options and pricing nonattainable alternatives
Excludes material on the capital asset pricing model, and condenses the material on probability in order to make the book more accessible to its readers
Contains necessary background in financial matters for readers with little experience in finance