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, random variables and probability, stochastic processes, arbitrage, option pricing, hedging, and portfolio optimization. The student progresses from knowing only elementary calculus to understanding the derivation and solution of the Black-Scholes partial differential equation and its solutions. This is one of the few books on the subject of financial mathematics which is accessible to undergraduates having only a thorough grounding in elementary calculus. It explains the subject matter without “hand waving” arguments and includes numerous examples. Every chapter concludes with a set of exercises which test the chapter's concepts and fill in details of derivations.
- 285 pages
- English
- PDF
- Available on iOS & Android
eBook - PDF
An Undergraduate Introduction to Financial Mathematics
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Information
Subtopic
Business MathematicsIndex
BusinessTable of contents
- Contents
- Preface
- 1. The Theory of Interest
- 2. Discrete Probability
- 3. Normal Random Variables and Probability
- 4. The Arbitrage Theorem
- 5. Random Walks and Brownian Motion
- 6. Options
- 7. Solution of the Black-Scholes Equation
- 8. Derivatives of Black-Scholes Option Prices
- 9. Hedging
- 10. Optimizing Portfolios
- Appendix A Sample Stock Market Data
- Appendix B Solutions to Chapter Exercises
- Bibliography
- Index
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Yes, you can access An Undergraduate Introduction to Financial Mathematics by J Robert Buchanan in PDF and/or ePUB format, as well as other popular books in Business & Business Mathematics. We have over 1.5 million books available in our catalogue for you to explore.