Financial Mathematics

Author: Stavros
Publisher:
Publish Date: 2004-03-01
Features: This book primarily explains the financial concepts and mathematical models used in modeling and hedging. Starting from relevant financial concepts, terms, and strategies, it gradually discusses discrete models and computational methods, continuous models and analytical methods centered around the Black-Scholes formula, as well as risk analysis in financial markets and hedging strategies. As a foundational textbook in financial mathematics, this book is suitable for undergraduate and graduate courses in related fields. Financial investment is one of the most dynamic economic activities in modern society. Since the emergence of the Black-Scholes formula in 1973, the financial industry has adopted mathematical models and tools at an unprecedented pace, leading to the integration of mathematics, finance, computer science, and the global economy. Driven by the inherent appeal of finance and the demand from numerous users, universities in the United States have increasingly offered corresponding courses. This book was written in response to this trend. It primarily explains the financial concepts and mathematical models used in modeling and hedging. Starting from relevant financial concepts, terms, and strategies, it gradually discusses discrete models and computational methods, continuous models and analytical methods centered around the Black-Scholes formula, as well as risk analysis in financial markets and hedging strategies. As a foundational textbook in financial mathematics, this book is suitable for undergraduate and graduate courses in related fields.