Steven Roman – Introduction to the Mathematics of Finance. From Risk Management to Options Pricing
$9.00
An elementary introduction to likelihood and mathematical finance together with a chapter on the Capital Asset Pricing Model (CAPM), a subject that may be very widespread amongst practitioners and economists.
Dr. Roman has authored 32 books, together with a quantity of books on arithmetic, corresponding to Coding and Information Theory, Advanced Linear Algebra, and Field Theory, revealed by Springer-Verlag.
Review
From the evaluations of the first version:
“The book concentrates on discrete derivative pricing models, culminating in a careful and complete derivation of the Black-Scholes option pricing formula as a limiting case of the Cox-Ross-Rubinstein discrete model. … The mathematics is not watered down but is appropriate for the intended audience. … No background in finance is required, since the book also contains a chapter on options.” (L’ENSEIGNEMENT MATHEMATIQUE, Vol. 50 (3-4), 2004)
“The book is basically a textbook on the mathematics of financial derivatives on equity … . The text covers the material with precision, with detailed discussions, not avoiding the topics that require a bit more of mathematical maturity, and this it does with clarity. In particular, the discussion of optimal stopping is clear and detailed.” (Eusebio Corbache, Zentralblatt MATH, Vol. 1068, 2005)
From the Back Cover
The Mathematics of Finance has turn into a sizzling subject in utilized arithmetic ever since the discovery of the Black-Scholes choice pricing formulation in 1973. Unfortunately, there are only a few undergraduate textbooks on this space. This guide is particularly written for higher division undergraduate or starting graduate college students in arithmetic, finance or economics. With the exception of an optionally available chapter on the Capital Asset Pricing Model, the guide concentrates on discrete spinoff pricing fashions, culminating in a cautious and full derivation of the Black-Scholes choice pricing formulation as a limiting case of the Cox-Ross-Rubinstein discrete mannequin. The ultimate chapter is devoted to American choices.
The arithmetic shouldn’t be watered down however is acceptable for the meant viewers. No measure concept is used and solely a small quantity of linear algebra is required. All vital likelihood concept is developed in a number of chapters all through the guide, on a “need-to-know” foundation. No background in finance is required, since the guide additionally incorporates a chapter on choices.
The writer is Emeritus Professor of Mathematics, having taught at a quantity of universities, together with MIT, UC Santa Barabara, the University of South Florida and the California State University, Fullerton. He has written 27 books in arithmetic at numerous ranges and 9 books on computing. His pursuits lie largely in the areas of algebra, set concept and logic, likelihood and finance. When not writing or educating, he likes to make interval furnishings, copy Van Gogh work and hear to classical music. He additionally likes tofu.
