Mathematics for Finance
Subtitle: An Introduction to Financial Engineering (Springer Undergraduate Mathematics Series)
Edition: 1st ed. 2003.  Corr. 4th printing edition
Publisher: Springer
Published: July 6, 2003
Language: eng
Format: Paperback
Number of pages: 310
ISBN-13: 9781852333300
Subjects: Applied mathematics; Investments; Business Mathematics; Mathematics; Business / Economics / Finance; Science/Mathematics; Mathematical models; Applied; Finance; Business & Economics / Finance; Derivative Securities; Financial Engineering; Mathematical Finance; Portfolio Theory; Risk Management; General
First sentence: Suppose that two assets are traded: one risk-free and one risky security.
Description: Designed to form the basis of an undergraduate course in mathematical finance, this book builds on mathematical models of bond and stock prices and covers three major areas of mathematical finance that all have an enormous impact on the way modern financial markets operate, namely: Black-Scholes’ arbitrage pricing of options and other derivative securities; Markowitz portfolio optimization theory and the Capital Asset Pricing Model; and interest rates and their term structure. Assuming only a basic knowledge of probability and calculus, it covers the material in a mathematically rigorous and complete way at a level accessible to second or third year undergraduate students. The text is interspersed with a multitude of worked examples and exercises, so it is ideal for self-study and suitable not only for students of mathematics, but also students of business management, finance and economics, and anyone with an interest in finance who needs to understand the underlying theory.