An Undergraduate Introduction to Financial Mathematics by Buchanan J Robert

By Buchanan J Robert

This textbook presents an advent to monetary arithmetic and monetary engineering for undergraduate scholars who've accomplished a 3- or four-semester series of calculus classes. It introduces the idea of curiosity, discrete and non-stop random variables and likelihood, stochastic methods, linear programming, the basic Theorem of Finance, alternative pricing, hedging, and portfolio optimization. This 3rd variation expands at the moment via together with a brand new bankruptcy at the extensions of the Black-Scholes version of alternative pricing and a better variety of workouts on the finish of every bankruptcy. extra historical past fabric and workouts extra, with options supplied to the opposite chapters, permitting the textbook to higher stand by myself as an advent to monetary arithmetic. The reader progresses from a pretty good grounding in multivariable calculus via a derivation of the Black-Scholes equation, its resolution, houses, and functions. The textual content makes an attempt to be as self-contained as attainable with no hoping on complex mathematical and statistical issues. the fabric provided during this booklet will competently arrange the reader for graduate-level examine in mathematical finance.

Contents:

  • The conception of Interest
  • Discrete Probability
  • Normal Random Variables and Probability
  • The Arbitrage Theorem
  • Random Walks and Brownian Motion
  • Forwards and Futures
  • Options
  • Solution of the Black-Scholes Equation
  • Derivatives of Black-Scholes alternative Prices
  • Hedging
  • Extensions of the Black-Scholes Model
  • Optimizing Portfolios
  • American Options

Readership: Undergraduate scholars in finance, economics, and utilized arithmetic; execs in banking, assurance and finance.

Show description

Read or Download An Undergraduate Introduction to Financial Mathematics PDF

Best banks & banking books

The Regulation of Financial Innovations: High Frequency Trading - Algorithmic Trading

Essay from the yr 2011 within the topic company economics - Banking, inventory Exchanges, coverage, Accounting, grade: 1,0, Technical collage of Berlin, language: English, summary: The paper bargains with makes an attempt to manage strategies within the monetary region. this can be tested through the problem of excessive Frequency Trading/Algorithmic buying and selling.

IMF Financial Operations 2014

IMF monetary Operations 2014 presents a large advent to how the IMF fulfills its venture via its monetary actions. It covers the monetary constitution and operations of the IMF and likewise presents heritage element of the monetary statements for the IMF’s actions throughout the latest monetary yr.

Liquidity Management: A Funding Risk Handbook (The Wiley Finance Series)

Strong administration of liquidity possibility in the altering regulatory framework Liquidity administration applies present hazard administration concept, ideas, and techniques to liquidity threat keep an eye on and administration to assist agencies organize in case of destiny monetary obstacle and altering regulatory framework.

Mit Nebenwerten zum Börsenolymp: Mit Aktien aus MDAX, TecDAX und SDAX den DAX schlagen (German Edition)

Börsenanfänger konzentrieren sich bei ihren ersten Schritten an der Börse häufig auf die bekannten, im DAX gelisteten Unternehmen. Zu Unrecht, weiß Börsenexpertin Beate Sander, denn viele Aktien aus den deutschen Nebenwert-Indizes MDAX, TecDAX und SDAX schlagen den DAX hinsichtlich Wertentwicklung um Längen.

Additional resources for An Undergraduate Introduction to Financial Mathematics

Example text

Download PDF sample

Rated 4.22 of 5 – based on 25 votes