ABSTRACT

Filling the void between surveys of the field with relatively light mathematical content and books with a rigorous, formal approach to stochastic integration and probabilistic ideas, Stochastic Financial Models provides a sound introduction to mathematical finance. The author takes a classical applied mathematical approach, focusing on calculations

chapter 1|24 pages

PORTFOLIO CHOICE

chapter 2|38 pages

THE BINOMIAL MODEL

chapter 3|20 pages

A GENERAL DISCRETE-TIME MODEL

chapter 4|30 pages

BROWNIAN MOTION

chapter 5|52 pages

THE BLACK–SCHOLES MODEL

chapter 6|28 pages

INTEREST-RATE MODELS