Arbitrage Theory in Continuous Time (Oxford Finance Series),Used

Arbitrage Theory in Continuous Time (Oxford Finance Series),Used

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The third edition of this popular introduction to the classical underpinnings of the mathematics behind finance continues to combine sound mathematical principles with economic applications.Concentrating on the probabilistic theory of continuous arbitrage pricing of financial derivatives, including stochastic optimal control theory and Merton's fund separation theory, the book is designed for graduate students and combines necessary mathematical background with a solid economic focus. It includes a solved example for every new technique presented, contains numerous exercises, and suggests further reading in each chapter.In this substantially extended new edition Bjork has added separate and complete chapters on the martingale approach to optimal investment problems, optimal stopping theory with applications to American options, and positive interest models and their connection to potential theory and stochastic discount factors.More advanced areas of study are clearly marked to help students and teachers use the book as it suits their needs.

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Frequently Asked Questions

  • Q: What is 'Arbitrage Theory in Continuous Time' about? A: This book is a comprehensive introduction to the mathematics of finance, focusing on continuous arbitrage pricing and its applications in financial derivatives. It combines mathematical principles with economic insights.
  • Q: Who is the author of this book? A: The author of 'Arbitrage Theory in Continuous Time' is Tomas Björk.
  • Q: What is the publication date of the third edition? A: The third edition was published on October 4, 2009.
  • Q: What is the condition of the book? A: The book is listed as 'Very Good' condition.
  • Q: How many pages does this book have? A: The book contains a total of 560 pages.
  • Q: What type of binding does this book have? A: This book is bound in hardcover.
  • Q: Is this book suitable for graduate students? A: Yes, the book is designed specifically for graduate students, providing essential mathematical background along with a strong economic focus.
  • Q: Does the book include exercises or examples? A: Yes, it includes solved examples for new techniques, numerous exercises, and suggestions for further reading in each chapter.
  • Q: What topics are covered in the new edition? A: The new edition includes chapters on the martingale approach, optimal stopping theory, and positive interest models, among other advanced topics.
  • Q: Can this book be helpful for learning about financial derivatives? A: Absolutely, the book focuses on the probabilistic theory of continuous arbitrage pricing, making it a valuable resource for understanding financial derivatives.