Financial Mathematics Tutorial

Author: (English) Athanasios Papadopoulos
Translator: Zhang Jizhou
Country: United Kingdom
Publisher:
Publishing Date: 2006-08-01
Features: Finance provides a vivid example of the successful application of modern mathematical techniques to real-world problems: the pricing of financial derivatives. This book can serve as an introductory textbook for financial mathematics, containing numerous exercises and examples, and is aimed at readers with a solid mathematical foundation. The book first introduces some basic concepts, such as binary trees, martingales, Brownian motion, stochastic integrals, and the Black-Scholes option pricing formula, based on a discrete-time framework. It then presents more complex financial models and financial products. The final chapter covers more advanced topics in finance, such as jump-diffusion models for stock prices and stochastic volatility.