Description
Book SynopsisOver the past two decades, the mathematically complex models of finance theory have had a direct and wide-ranging influence on finance practice. Nowhere is this conjoining of intrinsic intellectual interest with extrinsic application better exemplified than in derivative-security pricing. The backgrounds of the authors of Options, Futures and Exotic Derivatives fit perfectly this pattern of combining theory and practice and so does their book. The range and depth of subject matter show excellent taste for what is essential to know the field and what is relevant and important to its application in the financial world. In addition to its fine subject-defining, the book delivers on subject-content, with rigorous derivations presented in a clear, direct voice for the serious student, whether academic or practitioner. To the reader: Bon Appetit! Robert C. Merton, Harvard Business School Long-Term Capital Management, L.P. One of the merits of this book is that it is self-contained. It is bot
Table of ContentsSecurities Markets, Financial Innovation and the Trading Activity.
The Dynamics of Assets and Derivative Assets Prices.
Applications to Asset and Derivative Asset Pricing in Complete Markets.
Analytical European Models in Derivative Asset Pricing Theories and Their Applications.
Application of European Analytical Models to the Valuation of American Options With and Without Dividends and Their Applications.
Generalisation of Analytical Option Pricing Models to Stochastic Interest Rates and Their Applications.
Applications and Generalisation of Analytical Models to Stochastic Volatilities and Interest Rates.
The Lattice Approach and the Binomial Model.
Numerical Methods and the Pricing of American Options.
