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An Undergraduate Introduction to Financial Mathematics (Third Edition)

Amazon.com Price:  $32.00 (as of 08/05/2019 20:20 PST- Details)

Description

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 one by including a new chapter on the extensions of the Black-Scholes model of option pricing and a better choice of exercises on the end of each and every chapter. More background material and exercises added, with solutions provided to the other chapters, allowing the textbook to better stand by myself as an introduction to financial mathematics. The reader progresses from a pretty good 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 conceivable without relying on advanced mathematical and statistical topics. The material presented on this book will adequately prepare the reader for graduate-level study in mathematical finance.

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