Financial Mathematics Tutorial (English Version)

Author: Asserich
Publisher:
Publish Date: 2006-01-01
Features: The Nobel Prize in Economics has been awarded at least three times to economists who use mathematics as a tool to analyze financial problems. Financial mathematics, this emerging interdisciplinary field, has become a unique gem in the international financial world. The development of financial mathematics has triggered two "Wall Street revolutions." Today, financial mathematicians are among the most sought-after talents on Wall Street. Currently, the most in-demand talent in the domestic financial industry is senior who master the application of modern financial derivatives, can conduct quantitative analysis of financial risks, and are proficient in both finance and mathematics. This book is a financial mathematics textbook from the University of Oxford, containing numerous exercises and examples, and is aimed at readers with a certain mathematical foundation. It has been adopted by prestigious institutions such as Stanford University, the University of Chicago, and the University of California, San Diego. The book introduces basic concepts and topics such as binary trees, martingales, Brownian motion, stochastic integrals, and the Black-Scholes option pricing formula, as well as some complex financial models and financial products. The book first introduces basic concepts based on a discrete-time framework, such as binary trees, martingales, Brownian motion, stochastic integrals, and the Black-Scholes option pricing formula. It then introduces some complex financial models and financial products, with the final chapter covering more advanced financial topics such as jump-diffusion models for stock prices and stochastic volatility.