Derivatives (The Mcgraw-hill/Irwin Series in Finance, Insureance and Real Estate)

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Description

Derivatives makes a unique effort all through the text to give an explanation for what lies at the back of the formal mathematics of pricing and hedging. Questions starting from ‘how are forward prices made up our minds?’ to ‘why does the Black-Scholes formula have the shape it does?’ are answered all through the text. The authors use verbal and pictorial expositions, and from time to time easy mathematical models, to give an explanation for underlying principles before proceeding to formal research. Extensive uses of numerical examples for illustrative purposes are used all through to supplement the intuitive and formal presentations.

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