An Introduction to Financial Mathematics Option Valuation 2nd Edition

Are you looking for a comprehensive guide to understanding financial derivatives and option valuation? Look no further than “An Introduction to Financial Mathematics Option Valuation 2nd Edition.” This textbook covers a wide range of concepts and models essential for valuing financial instruments.

Introduction to Financial Mathematics: Option Valuation, Second Edition offers a comprehensive overview of financial derivatives valuation techniques. With fifteen chapters covering both discrete and continuous time models, this book delves into fundamental finance and probability theories essential for understanding option pricing.

The text begins by introducing basic financial concepts before delving into discrete-time option valuation methods such as the binomial model. The latter part of the book explores the renowned Black-Scholes model, providing a detailed analysis of option pricing principles using discrete and stochastic calculus models.

New exercises and examples have been added to this second edition, complemented with tables and graphs generated by over 30 MS Excel VBA modules curated by the author.

FAQs

What topics are covered in this textbook?

This textbook covers fundamental finance, probability theories, discrete-time option valuation methods, continuous-time models, and the Black-Scholes model in detail.

Are there practice exercises available for readers?

Yes, the second edition includes new exercises to help readers reinforce their understanding of option valuation concepts.

Conclusion

“An Introduction to Financial Mathematics Option Valuation 2nd Edition” serves as an indispensable resource for students and professionals seeking a deeper understanding of financial derivatives and option pricing. With its comprehensive coverage and practical examples, this textbook is a valuable tool for mastering the intricacies of option valuation.