Undergraduate Texts in Mathematics

Introduction to the Mathematics of Finance

Arbitrage and Option Pricing

Authors: Roman, Steven

  • New edition fully rewritten, re-organized, and slimmed down to make the book flow more smoothly
  • Classroom-tested for the past five years since the first edition
  • Includes additional material on options and pricing nonattainable alternatives
  • Excludes material on the capital asset pricing model, and condenses the material on probability in order to make the book more accessible to its readers
  • Contains necessary background in financial matters for readers with little experience in finance
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eBook $44.99
price for USA (gross)
  • ISBN 978-1-4614-3582-2
  • Digitally watermarked, DRM-free
  • Included format: PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover $59.95
price for USA
  • ISBN 978-1-4614-3581-5
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
Softcover $59.95
price for USA
  • ISBN 978-1-4899-8599-6
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
Rent the ebook  
  • Rental duration: 1 or 6 month
  • low-cost access
  • online reader with highlighting and note-making option
  • can be used across all devices
About this Textbook

The Mathematics of Finance has been a hot topic ever since the discovery of the Black-Scholes option pricing formulas in 1973. Unfortunately, there are very few undergraduate textbooks in this area. This book is specifically written for advanced undergraduate or beginning graduate students in mathematics, finance or economics. This book concentrates on discrete derivative pricing models, culminating in a careful and complete derivation of the Black-Scholes option pricing formulas as a limiting case of the Cox-Ross-Rubinstein discrete model.

This second edition is a complete rewrite of the first edition with significant changes to the topic organization, thus making the book flow much more smoothly. Several topics have been expanded such as the discussions of options, including the history of options, and pricing nonattainable alternatives. In this edition the material on probability has been condensed into fewer chapters, and the material on the capital asset pricing model has been removed.

The mathematics is not watered down, but it is appropriate for the intended audience. Previous knowledge of measure theory is not needed and only a small amount of linear algebra is required. All necessary probability theory is developed throughout the book on a "need-to-know" basis. No background in finance is required, since the book contains a chapter on options. 

About the authors

Steven Roman is currently an Emeritus Professor of Mathematics at the University of California.  He is a prolific Springer author; some of his books include Field Theory, Advanced Linear Algebra, Introduction to Coding and Information Theory, and most recently Fundamentals of Group Theory.

Table of contents (1 chapters)

Buy this book

eBook $44.99
price for USA (gross)
  • ISBN 978-1-4614-3582-2
  • Digitally watermarked, DRM-free
  • Included format: PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover $59.95
price for USA
  • ISBN 978-1-4614-3581-5
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
Softcover $59.95
price for USA
  • ISBN 978-1-4899-8599-6
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
Rent the ebook  
  • Rental duration: 1 or 6 month
  • low-cost access
  • online reader with highlighting and note-making option
  • can be used across all devices
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Bibliographic Information

Bibliographic Information
Book Title
Introduction to the Mathematics of Finance
Book Subtitle
Arbitrage and Option Pricing
Authors
Series Title
Undergraduate Texts in Mathematics
Copyright
2012
Publisher
Springer-Verlag New York
Copyright Holder
Steven Roman
eBook ISBN
978-1-4614-3582-2
DOI
10.1007/978-1-4614-3582-2
Hardcover ISBN
978-1-4614-3581-5
Softcover ISBN
978-1-4899-8599-6
Series ISSN
0172-6056
Edition Number
2
Number of Pages
XVI, 288
Topics