If you have any questions, you are always welcome to contact us. We'll get back to you as soon as possible, withing 24 hours on weekdays.
Customer service
All questions about your order, return and delivery must be sent to our customer service team by e-mail at yourstore@yourdomain.com
Sale & Press
If you are interested in selling our products, need more information about our brand or wish to make a collaboration, please contact us at press@yourdomain.com
Help
If you have any questions, you are always welcome to contact us. We'll get back to you as soon as possible, withing 24 hours on weekdays.
Customer service
All questions about your order, return and delivery must be sent to our customer service team by e-mail at yourstore@yourdomain.com
Sale & Press
If you are interested in selling our products, need more information about our brand or wish to make a collaboration, please contact us at press@yourdomain.com
This book explains in simple settings the fundamental ideas of financial market modelling and derivative pricing, using the noarbitrage principle. Relatively elementary mathematics leads to powerful notions and techniques such as viability, completeness, selffinancing and replicating strategies, arbitrage and equivalent martingale measures which are directly applicable in practice. The general methods are applied in detail to pricing and hedging European and American options within the CoxRossRubinstein (CRR) binomial tree model. A simple approach to discrete interest rate models is included, which, though elementary, has some novel features. All proofs are written in a userfriendly manner, with each step carefully explained and following a natural flow of thought. In this way the student learns how to tackle new problems.
⚠️ WARNING (California Proposition 65):
This product may contain chemicals known to the State of California to cause cancer,
birth defects, or other reproductive harm.
<div class="dynamic-checkout__content" id="dynamic-checkout-cart" data-shopify="dynamic-checkout-cart"> <shopify-accelerated-checkout-cart wallet-configs="[{"supports_subs":true,"supports_def_opts":false,"name":"shop_pay","wallet_params":{"shopId":73758048501,"merchantName":"Ergodebooks","personalized":true}},{"supports_subs":false,"supports_def_opts":false,"name":"amazon_pay","wallet_params":{"checkoutLanguage":"en_US","ledgerCurrency":"USD","placement":"Cart","sandbox":false,"merchantId":"A1G1ZY975O1T6J","productType":"PayAndShip","design":"C0002"}},{"supports_subs":true,"supports_def_opts":false,"name":"paypal","wallet_params":{"shopId":73758048501,"countryCode":"US","merchantName":"Ergodebooks","phoneRequired":true,"companyRequired":false,"shippingType":"shipping","shopifyPaymentsEnabled":true,"hasManagedSellingPlanState":false,"requiresBillingAgreement":false,"merchantId":"L873BZSC9NMQS","sdkUrl":"https://www.paypal.com/sdk/js?components=buttons\u0026commit=false\u0026currency=USD\u0026locale=en_US\u0026client-id=AbasDhzlU0HbpiStJiN1KRJ_cNJJ7xYBip7JJoMO0GQpLi8ePNgdbLXkC7_KMeyTg8tnAKW4WKrh9qmf\u0026merchant-id=L873BZSC9NMQS\u0026intent=authorize"}}]" access-token="c0f52a66b386e9fa5c0ab4c2febc737c" buyer-country="US" buyer-locale="en" buyer-currency="USD" shop-id="73758048501" cart-id="054f6e0d3c6fa3e0a2beedb6317fcd95" enabled-flags="["ce346acf"]" > <div class="wallet-button-wrapper"> <ul class='wallet-cart-grid wallet-cart-grid--skeleton' role="list" data-shopify-buttoncontainer="true"> <li data-testid='grid-cell' class='wallet-cart-button-container'><div class='wallet-cart-button wallet-cart-button__skeleton' role='button' disabled aria-hidden='true'> </div></li><li data-testid='grid-cell' class='wallet-cart-button-container'><div class='wallet-cart-button wallet-cart-button__skeleton' role='button' disabled aria-hidden='true'> </div></li><li data-testid='grid-cell' class='wallet-cart-button-container'><div class='wallet-cart-button wallet-cart-button__skeleton' role='button' disabled aria-hidden='true'> </div></li> </ul> </div> </shopify-accelerated-checkout-cart> <small id="shopify-buyer-consent" class="hidden" aria-hidden="true" data-consent-type="subscription"> One or more of the items in your cart is a deferred, subscription, or recurring purchase. By continuing, I agree to the <span id="shopify-subscription-policy-button">cancellation policy</span> and authorize you to charge my payment method at the prices, frequency and dates listed on this page until my order is fulfilled or I cancel, if permitted. </small> </div>
Stay in the know
Subscribe to our newsletter and stay updated on latest offers, discounts and events near you.
For MAP (Minimum Advertised Price) violations and Intellectual Property (IP) or Trademark concerns, please contact:
support@ergodebooks.com
⚠️ California Proposition 65 Warning: Some products sold on this website may expose you to chemicals known to the State of California to cause cancer, birth defects, or other reproductive harm. For more information, visit www.P65Warnings.ca.gov.
