Introduction to Financial Mathematics


Book Description

This book’s primary objective is to educate aspiring finance professionals about mathematics and computation in the context of financial derivatives. The authors offer a balance of traditional coverage and technology to fill the void between highly mathematical books and broad finance books. The focus of this book is twofold: To partner mathematics with corresponding intuition rather than diving so deeply into the mathematics that the material is inaccessible to many readers. To build reader intuition, understanding and confidence through three types of computer applications that help the reader understand the mathematics of the models. Unlike many books on financial derivatives requiring stochastic calculus, this book presents the fundamental theories based on only undergraduate probability knowledge. A key feature of this book is its focus on applying models in three programming languages –R, Mathematica and EXCEL. Each of the three approaches offers unique advantages. The computer applications are carefully introduced and require little prior programming background. The financial derivative models that are included in this book are virtually identical to those covered in the top financial professional certificate programs in finance. The overlap of financial models between these programs and this book is broad and deep.




Systems Approaches in Computer Science and Mathematics


Book Description

Applied Systems and Cybernetics, Volume V: Systems Approaches in Computer Science and Mathematics covers the proceedings of the International Congress on Applied Systems Research and Cybernetics. This book discusses trends and advances in the application of systems science and cybernetics to various fields. This volume reviews the systems approaches in computer science and mathematics and concentrates on several major areas of systems research in computer science and theoretical and applied mathematics. This book will be of great interest to computer scientists interested in the development of the theories and applications of computer science.




Convex Duality and Financial Mathematics


Book Description

This book provides a concise introduction to convex duality in financial mathematics. Convex duality plays an essential role in dealing with financial problems and involves maximizing concave utility functions and minimizing convex risk measures. Recently, convex and generalized convex dualities have shown to be crucial in the process of the dynamic hedging of contingent claims. Common underlying principles and connections between different perspectives are developed; results are illustrated through graphs and explained heuristically. This book can be used as a reference and is aimed toward graduate students, researchers and practitioners in mathematics, finance, economics, and optimization. Topics include: Markowitz portfolio theory, growth portfolio theory, fundamental theorem of asset pricing emphasizing the duality between utility optimization and pricing by martingale measures, risk measures and its dual representation, hedging and super-hedging and its relationship with linear programming duality and the duality relationship in dynamic hedging of contingent claims




Understanding Financial Risk Management


Book Description

Understanding Financial Risk Management provides an innovative approach to financial risk management. With a broad view of theory and the industry, it aims at being a friendly, but serious, starting point for those who encounter risk management for the first time, as well as for more advanced users.




ASTIN Bulletin


Book Description




The Triumvirate Approach to Systems Engineering, Technology Management and Engineering Management


Book Description

This text is meant for introductory and midlevel program and project managers, Systems Engineering (SE), Technology Management (TM) and Engineering Management (EM) professionals. This includes support personnel who underpin and resource programs and projects. Anyone who wishes to understand what SE, TM and EM are, how they work together, what their differences are, when they should be used and what benefits should be expected, will find this text an invaluable resource. It will also help students to understand the career paths in innovation and entrepreneurship to choose from. There is considerable confusion today on when and where to use each discipline, and how they should be applied to individual circumstances. This text provides practitioners with the guidelines necessary to know when to use a specific discipline, how to use them and what results to expect. The text clearly shows how the disciplines retain focus of goals and targets, using cost, scope, schedule and risk to their advantage, while complying with and informing investors, oversight and those related personnel who eventually govern corporate or government decisions. It is more of an entry and midlevel general overview instructing the reader how to use the disciplines and when to use them. To use them all properly, more in-depth study is always necessary. However, the reader will know when to start, where to go and what disciplines to employ depending on the product, service, market, infrastructure, system or service under consideration. To date, none of this is available in existing literature. All texts on the subject stretch to try and cover all things, which is simply not possible, even with the definitions assigned by the three disciplines.




Simulation and Monte Carlo


Book Description

Simulation and Monte Carlo is aimed at students studying for degrees in Mathematics, Statistics, Financial Mathematics, Operational Research, Computer Science, and allied subjects, who wish an up-to-date account of the theory and practice of Simulation. Its distinguishing features are in-depth accounts of the theory of Simulation, including the important topic of variance reduction techniques, together with illustrative applications in Financial Mathematics, Markov chain Monte Carlo, and Discrete Event Simulation. Each chapter contains a good selection of exercises and solutions with an accompanying appendix comprising a Maple worksheet containing simulation procedures. The worksheets can also be downloaded from the web site supporting the book. This encourages readers to adopt a hands-on approach in the effective design of simulation experiments. Arising from a course taught at Edinburgh University over several years, the book will also appeal to practitioners working in the finance industry, statistics and operations research.




Financial Mathematics, Derivatives and Structured Products


Book Description

This book introduces readers to the financial markets, derivatives, structured products and how the products are modelled and implemented by practitioners. In addition, it equips readers with the necessary knowledge of financial markets needed in order to work as product structurers, traders, sales or risk managers. As the book seeks to unify the derivatives modelling and the financial engineering practice in the market, it will be of interest to financial practitioners and academic researchers alike. Further, it takes a different route from the existing financial mathematics books, and will appeal to students and practitioners with or without a scientific background. The book can also be used as a textbook for the following courses: • Financial Mathematics (undergraduate level) • Stochastic Modelling in Finance (postgraduate level) • Financial Markets and Derivatives (undergraduate level) • Structured Products and Solutions (undergraduate/postgraduate level)




Introductory Econometrics for Finance


Book Description

The only econometrics textbook written specifically for finance students with no prior knowledge of econometrics, including extensive online student support.




Financial Theory with Python


Book Description

Nowadays, finance, mathematics, and programming are intrinsically linked. This book provides the relevant foundations of each discipline to give you the major tools you need to get started in the world of computational finance. Using an approach where mathematical concepts provide the common background against which financial ideas and programming techniques are learned, this practical guide teaches you the basics of financial economics. Written by the best-selling author of Python for Finance, Yves Hilpisch, Financial Theory with Python explains financial, mathematical, and Python programming concepts in an integrative manner so that the interdisciplinary concepts reinforce each other. Draw upon mathematics to learn the foundations of financial theory and Python programming Learn about financial theory, financial data modeling, and the use of Python for computational finance Leverage simple economic models to better understand basic notions of finance and Python programming concepts Use both static and dynamic financial modeling to address fundamental problems in finance, such as pricing, decision-making, equilibrium, and asset allocation Learn the basics of Python packages useful for financial modeling, such as NumPy, pandas, Matplotlib, and SymPy