Synopses & Reviews
Synopsis
Introducting Financial Mathematics: Theory, Binomial Models, and Applications seeks to replace existing books with a more rigorous stand-alone text that covers fewer examples but with more proofs, and also provides example computer programs, mainly in Octave/MATLAB but also as spreadsheets and Macsyma scripts, with which students may experiment on real data, The goal is to fill the large gaps among math-less finance texts, purely theoretical economics texts, and specific software-focused engineering texts. The book will cover both discrete and continuous models. Unique coverage includes computing implied volatility and fitting discrete models to market data. Calc and Octave], fundamental theorems of asset pricing as an introduction to linear algebra and convex analysis. more advanced proofs, with some calculations in Octave].
Synopsis
Introducing Financial Mathematics: Theory, Binomial Models, and Applications seeks to replace existing books with a rigorous stand-alone text that covers fewer examples in greater detail with more proofs. The book uses the fundamental theorem of asset pricing as an introduction to linear algebra and convex analysis. It also provides
example computer programs, mainly Octave/MATLAB functions but also spreadsheets and Macsyma scripts, with which students may experiment on real data.The text's unique coverage is in its contemporary combination of
discrete and continuous models to compute implied volatility and fit models to market data. The goal is to bridge the large gaps among nonmathematical finance texts, purely theoretical economics texts, and specific software-focused engineering texts.