Introduction To The Economics And Mathematics Of Financial Markets

Introduction To The Economics And Mathematics Of Financial Markets

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An Innovative Textbook For Use In Advanced Undergraduate And Graduate Courses; Accessible To Students In Financial Mathematics, Financial Engineering And Economics.Introduction To The Economics And Mathematics Of Financial Markets Fills The Longstanding Need For An Accessible Yet Serious Textbook Treatment Of Financial Economics. The Book Provides A Rigorous Overview Of The Subject, While Its Flexible Presentation Makes It Suitable For Use With Different Levels Of Undergraduate And Graduate Students. Each Chapter Presents Mathematical Models Of Financial Problems At Three Different Degrees Of Sophistication: Singleperiod, Multiperiod, And Continuoustime. The Singleperiod And Multiperiod Models Require Only Basic Calculus And An Introductory Probability/Statistics Course, While An Advanced Undergraduate Course In Probability Is Helpful In Understanding The Continuoustime Models. In This Way, The Material Is Given Complete Coverage At Different Levels; The Less Advanced Student Can Stop Before The More Sophisticated Mathematics And Still Be Able To Grasp The General Principles Of Financial Economics.The Book Is Divided Into Three Parts. The First Part Provides An Introduction To Basic Securities And Financial Market Organization, The Concept Of Interest Rates, The Main Mathematical Models, And Quantitative Ways To Measure Risks And Rewards. The Second Part Treats Option Pricing And Hedging; Here And Throughout The Book, The Authors Emphasize The Martingale Or Probabilistic Approach. Finally, The Third Part Examines Equilibrium Modelsa Subject Often Neglected By Other Texts In Financial Mathematics, But Included Here Because Of The Qualitative Insight It Offers Into The Behavior Of Market Participants And Pricing.

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Frequently Asked Questions

  • Q: What is the main focus of 'Introduction to the Economics and Mathematics of Financial Markets'? A: This textbook focuses on providing a rigorous overview of financial economics, integrating mathematical models of financial problems across varying levels of complexity.
  • Q: Who is the intended audience for this textbook? A: The book is designed for advanced undergraduate and graduate students studying financial mathematics, financial engineering, and economics.
  • Q: What topics are covered in this textbook? A: The textbook covers basic securities, financial market organization, interest rates, risk measurement, option pricing, hedging, and equilibrium models.
  • Q: Does this book require prior knowledge of mathematics? A: Yes, basic calculus and an introductory course in probability/statistics are needed for single-period and multi-period models, while continuous-time models require advanced undergraduate knowledge in probability.
  • Q: How is the content structured across different chapters? A: Each chapter presents financial models at three levels of sophistication: single-period, multi-period, and continuous-time, allowing students to choose their level of engagement.
  • Q: What is the publication date of this textbook? A: The textbook was published on February 27, 2004.
  • Q: Is there a specific edition of this book? A: Yes, this is the First Edition (US) First Printing of the textbook.
  • Q: What type of binding does this book have? A: The textbook is available in hardcover binding.
  • Q: How many pages does the book contain? A: The book contains a total of 494 pages.
  • Q: What condition is the book in? A: The book is brand new and has not been previously used.