Description
Book SynopsisThe purpose of
An Introduction to Algorithmic Finance is to provide a broad-based accessible introduction to three of the presently most important areas of computational finance, namely, option pricing, algorithmic trading and blockchain. This will provide a basic understanding required for a career in the finance industry and for doing more specialized courses in finance.
An Introduction to Algorithmic Finance breaks down into three parts. The first part provides the necessary theoretical background to Derivatives, Options and Stochastic Dominance. The second part covers various algorithmic issues of finance, discussing specific algorithms, their applications and consequences. The third part of the book is devoted to blockchain and cryptocurrency which complements the first two parts.
An Introduction to Algorithmic Finance is an interesting, important read for anyone interested in or invested in the finance industry & it highlights and explains current phenomena in algorithmic finance in an articulate manner.
Table of ContentsI Derivatives, Options and Stochastic Dominance Chapter 1. Background and Preliminaries Chapter 2. Valuation of Cash Flows and Fixed Income Securities: An Abridged Analysis Chapter 3. A Brief Analytical Exposition of Markets for Options Chapter 4. The Binomial Model: A Simplified Analysis Chapter 5. Brownian Motion, Itô Lemma and The Black-Scholes-Merton Model Chapter 6. Exotic Options: An Illustrative Presentation Chapter 7. An Abbreviated Theoretical Treatment of Stochastic Dominance Relations
II Algorithmic Issues Chapter 8. Option Pricing Using Finite Difference Method Chapter 9. Option Pricing Using Monte Carlo Methods Chapter 10. Determining Stochastic Dominance Relations Chapter 11. Trading: Background Notions and Market Microstructure Chapter 12. Algorithmic Trading Strategies Chapter 13. Portfolio Optimisation Chapter 14. Measures of Risk Chapter 15. High Frequency Trading
III Blockchain and Cryptocurrency Chapter 16. Background Concepts for Blockchain Chapter 17. Introduction to Blockchain Chapter 18. Cryptocurrency: Basics Chapter 19. Cryptocurrency: Further Issues Chapter 20. Examples of Cryptocurrencies Chapter 21. Applications of Blockchain
