Note:
I have left the h33t tracker, not to worry this it a genuine tqw release.
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CONTENTS
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Synopsis:
This text is designed for first courses in financial calculus aimed at
students with a good background in mathematics. Key concepts such as
martingales and change of measure are introduced in the discrete time
framework, allowing an accessible account of Brownian motion and stochastic
calculus. The Black-Scholes pricing formula is first derived in the simplest
financial context. Subsequent chapters are devoted to increasing the
financial sophistication of the models and instruments. The final chapter
introduces more advanced topics including stock price models with jumps, and
stochastic volatility. A large number of exercises and examples illustrate
how the methods and concepts can be applied to realistic financial questions.
Table Of Contents:
Preface
1 Single period models 1
2 Binomial trees and discrete parameter martingales 21
3 Brownian motion 51
4 Stochastic calculus 71
5 The Black-Scholes model 112
6 Different payoffs 139
7 Bigger models 159
Bibliography 189
Notation 191
Index 193