ABSTRACT

Written in a rigorous yet logical and easy to use style, spanning a range of disciplines, including business, mathematics, finance and economics, this comprehensive textbook offers a systematic, self-sufficient yet concise presentation of the main topics and related parts of stochastic analysis and statistical finance that are covered in the majori

chapter 1|16 pages

Review of probability theory

chapter 2|6 pages

Basics of stochastic processes

chapter 3|26 pages

Discrete time market models

chapter 5|35 pages

Continuous time market models

chapter 6|22 pages

American options and binomial trees

chapter 7|7 pages

Implied and historical volatility

chapter 8|29 pages

Review of statistical estimation

chapter 9|14 pages

Estimation of models for stock prices