System Upgrade on Tue, May 28th, 2024 at 2am (EDT)
Existing users will be able to log into the site and access content. However, E-commerce and registration of new users may not be available for up to 12 hours.For online purchase, please visit us again. Contact us at customercare@wspc.com for any enquiries.
New Edition: An Undergraduate Introduction to Financial Mathematics (4th Edition)
This textbook provides an introduction to financial mathematics and financial engineering for undergraduate students who have completed a three or four semester sequence of calculus courses. It introduces the theory of interest, random variables and probability, stochastic processes, arbitrage, option pricing, hedging, and portfolio optimization. The student progresses from knowing only elementary calculus to understanding the derivation and solution of the Black-Scholes partial differential equation and its solutions. This is one of the few books on the subject of financial mathematics which is accessible to undergraduates having only a thorough grounding in elementary calculus. It explains the subject matter without “hand waving” arguments and includes numerous examples. Every chapter concludes with a set of exercises which test the chapter's concepts and fill in details of derivations.
Sample Chapter(s)
Chapter 1: The Theory of Interest (148 KB)
- The Theory of Interest
- Discrete Probability
- Normal Random Variables and Probability
- The Arbitrage Theorem
- Random Walks and Brownian Motion
- Options
- Solution of the Black–Scholes Equation
- Derivatives of Black–Scholes Option Prices
- Hedging
- Optimizing Portfolios
