Binding: Paperback
Description: This book explains in simple settings the fundamental ideas of financial market modelling and derivative pricing using the no - arbitrage principle. Relatively elementary mathematics leads to powerful notions and techniques - such as viability completeness self - financing 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 Cox Ross Rubinstein (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 user - friendly manner with each step carefully explained and following a natural flow of thought. In this way the student learns how to tackle new problems.
Title: Discrete Models Of Financial Markets
Author(s): Kopp Ekkehard (University Of Hull)
Publisher: Cambridge University Press
Barcode: 9780521175722
Pages: 192 Pages, Worked Examples Or Exercises; 10 Line Drawings, Unspecified
Publication Date: 2/23/2012
Series: Mastering Mathematical Finance
Category: Mathematical Modelling