Financial Calculus

Here Is The First Rigorous And Accessible Account Of The Mathematics Behind The Pricing Construction And Hedging Of Derivative Securities. With Mathematical Precision And In A Style Tailored For Market Practioners The Authors Describe Key Concepts Such As Martingales Change Of Measure And The Heath-Jarrow-Morton Model. Starting From Discrete-Time Hedging On Binary Trees The Authors Develop Continuous-Time Stock Models (Including The Black-Scholes Method). They Stress Practicalities Including Examples From Stock Currency And Interest Rate Markets All Accompanied By Graphical Illustrations With Realistic Data. The Authors Provide A Full Glossary Of Probabilistic And Financial Terms.