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An Introduction to Quantitative Finance: A Three-Principle Approach

Amazon.com Price:  $32.98 (as of 12/05/2019 17:44 PST- Details)

Description

This concise textbook provides a unique framework to introduce Quantitative Finance to advanced undergraduate and beginning postgraduate students. Inspired by Newton’s three laws of motion, three principles of Quantitative Finance are proposed to assist practitioners also to be aware the pricing of plain vanilla derivatives and fixed source of revenue securities.The book provides a refreshing standpoint on Box’s thesis that “all models are unsuitable, but some are useful.” Being practice- and market-oriented, the creator specializes in financial derivatives that matter most to practitioners.The 3 principles of Quantitative Finance serve as buoys for navigating the treacherous waters of hypotheses, models, and gaps between theory and practice. The creator shows that a risk-based parsimonious model for modeling the form of the yield curve, the arbitrage-free properties of options, the Black-Scholes and binomial pricing models, even the capital asset pricing model and the Modigliani-Miller propositions may also be obtained systematically by applying the normative principles of Quantitative Finance.

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