Undergraduate Introduction to Financial Mathematics, an (Third Edition ) 3rd

Undergraduate Introduction to Financial Mathematics, an (Third Edition ) 3rd – Digital Instant Dowload.

Product details:

• ISBN-10 ‏ : ‎ 9814407445
• ISBN-13 ‏ : ‎ 978-9814407441
• Author: J Robert Buchanan (Author)

This textbook provides an introduction to financial mathematics and financial engineering for undergraduate students who have completed a three- or four-semester sequence of calculus courses. It introduces the theory of interest, discrete and continuous random variables and probability, stochastic processes, linear programming, the Fundamental Theorem of Finance, option pricing, hedging, and portfolio optimization. This third edition expands on the second by including a new chapter on the extensions of the Black-Scholes model of option pricing and a greater number of exercises at the end of each chapter. More background material and exercises added, with solutions provided to the other chapters, allowing the textbook to better stand alone as an introduction to financial mathematics. The reader progresses from a solid grounding in multivariable calculus through a derivation of the Black-Scholes equation, its solution, properties, and applications. The text attempts to be as self-contained as possible without relying on advanced mathematical and statistical topics. The material presented in this book will adequately prepare the reader for graduate-level study in mathematical finance.

Table contents:

1 The Theory of Interest 1

2 Discrete Probability 23

3 The Arbitrage Theorem 69

4 Optimal Portfolio Choice 99

5 Forwards and Futures 135

6 Options 163

7 Approximating Option Prices Using Binomial Trees 191

8 Normal Random Variables and Probability 211

9 Random Walks and Brownian Motion 249

10 Black-Scholes Equation and Option Formulas 287

11 Extensions of the Black-Scholes Model 307

12 Derivatives of Black-Scholes Option Prices 323

13 Hedging 347

14 Exotic Options 365