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Mathematics of Financial Markets

Mathematics of Financial Markets PDF Author: Robert J Elliott
Publisher: Springer Science & Business Media
ISBN: 1475771460
Category : Mathematics
Languages : en
Pages : 298

Book Description
This book explores the mathematics that underpins pricing models for derivative securities such as options, futures and swaps in modern markets. Models built upon the famous Black-Scholes theory require sophisticated mathematical tools drawn from modern stochastic calculus. However, many of the underlying ideas can be explained more simply within a discrete-time framework. This is developed extensively in this substantially revised second edition to motivate the technically more demanding continuous-time theory.