Martin W. Baxter,Andrew J. O. Rennie: Financial Calculus: An Introduction to Derivative Pricing

Financial Calculus: An Introduction to Derivative Pricing


Description

The rewards and dangers of speculating in the modern financial markets have come to the fore in recent times with the collapse of banks and bankruptcies of public corporations as a direct result of ill-judged investment. At the same time, individuals are paid huge sums to use their mathematical skills to make well-judged investment decisions. Here now is the first rigorous and accessible account of the mathematics behind the pricing, construction and hedging of derivative securities. Key concepts such as martingales, change of measure, and the Heath-Jarrow-Morton model are described with mathematical precision in a style tailored for market practitioners. Starting from discrete-time hedging on binary trees, continuous-time stock models (including Black-Scholes) are developed. Practicalities are stressed, including examples from stock, currency and interest rate markets, all accompanied by graphical illustrations with realistic data. A full glossary of probabilistic and financial terms is provided. This unique book will be an essential purchase for market practitioners, quantitative analysts, and derivatives traders.

A renowned intuitive and visionary shows you how to know what you need to know just when you need to know it. Intuition is not a rare gift that only a gifted few possess but an innate human capacity that can be enhanced and developed. Synthesizing insights from psychology, East- West philosophy, religion, metaphysics, and business, this hands-on workbook in the tradition of Julia Cameron's The Artist's Way, can teach anyone to achieve a heightened state of perceptual vitality and integrate it into daily life. Intuition, writes Penney Peirce, is "not the opposite of logic," but rather "a comprehensive way of knowing life that includes both left-brain analytical thinking and right-brain communication states." On a practical level, intuition enables us to learn faster and make quicker, more inspired decisions. On a deeper level, it "is a powerful tool that can heal Financial Calculus: An Introduction to Derivative Pricing free pdf the painful split we all feel between our earthly, mundane selves and our divine, eternal selves." Widely praised in its earlier editions, this new edition of The Intuitive Way, with a Foreword by Carol Adrienne, will introduce Penney Peirce's pioneering work to a whole new readership.


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Author: Martin W. Baxter,Andrew J. O. Rennie
Number of Pages: 244 pages
Published Date: 28 Sep 1996
Publisher: CAMBRIDGE UNIVERSITY PRESS
Publication Country: Cambridge, United Kingdom
Language: English
ISBN: 9780521552899
Download Link: Click Here
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