Save 40% on select Business & Management books + FREE shipping or 50% on Physics eBooks!

Undergraduate Texts in Mathematics

Mathematics of Finance

An Intuitive Introduction

Authors: Saari, Donald G.

Free Preview
  • Promotes critical thinking skills to develop intuition about financial options
  • Highlights the mathematical concepts fundamental to finance by offering an intuitive approach
  • Offers instructors potentially new to the area a valuable resource for teaching a mathematical finance course
  • Simplifies complex mathematical concepts, such as the derivation of the Black–Scholes equation and its solutions, by emphasizing the concepts behind a formula
see more benefits

Buy this book

eBook 27,36 €
price for Spain (gross)
  • ISBN 978-3-030-25443-8
  • Digitally watermarked, DRM-free
  • Included format: EPUB, PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Softcover 34,31 €
price for Spain (gross)
  • Due: September 11, 2019
  • ISBN 978-3-030-25442-1
  • Free shipping for individuals worldwide
  • The final prices may differ from the prices shown due to specifics of VAT rules
About this Textbook

This textbook invites the reader to develop a holistic grounding in mathematical finance, where concepts and intuition play as important a role as powerful mathematical tools. Financial interactions are characterized by a vast amount of data and uncertainty; navigating the inherent dangers and hidden opportunities requires a keen understanding of what techniques to apply and when. By exploring the conceptual foundations of options pricing, the author equips readers to choose their tools with a critical eye and adapt to emerging challenges.

Introducing the basics of gambles through realistic scenarios, the text goes on to build the core financial techniques of Puts, Calls, hedging, and arbitrage. Chapters on modeling and probability lead into the centerpiece: the Black–Scholes equation. Omitting the mechanics of solving Black–Scholes itself, the presentation instead focuses on an in-depth analysis of its derivation and solutions. Advanced topics that follow include the Greeks, American options, and embellishments. Throughout, the author presents topics in an engaging conversational style. “Intuition breaks” frequently prompt students to set aside mathematical details and think critically about the relevance of tools in context.

Mathematics of Finance is ideal for undergraduates from a variety of backgrounds, including mathematics, economics, statistics, data science, and computer science. Students should have experience with the standard calculus sequence, as well as a familiarity with differential equations and probability. No financial expertise is assumed of student or instructor; in fact, the text’s deep connection to mathematical ideas makes it suitable for a math capstone course. A complete set of the author’s lecture videos is available on YouTube, providing a comprehensive supplementary resource for a course or independent study.



About the authors

Donald G. Saari is Emeritus Professor of Mathematics and Economics at the University of California, Irvine. His contributions to voting theory, economics, and celestial mechanics are widely celebrated, and his achievements include election to the U.S. National Academy of Sciences and the Chauvenet Prize for mathematical exposition. His books Geometry of Voting and Basic Geometry of Voting are celebrated for their seminal contributions to mathematical voting theory.

Table of contents (9 chapters)

Table of contents (9 chapters)
  • Preliminaries via Gambles

    Pages 1-27

    Saari, Donald G.

  • Options

    Pages 29-53

    Saari, Donald G.

  • Modeling

    Pages 55-70

    Saari, Donald G.

  • Some Probability

    Pages 71-87

    Saari, Donald G.

  • The Black–Scholes Equation

    Pages 89-103

    Saari, Donald G.

Buy this book

eBook 27,36 €
price for Spain (gross)
  • ISBN 978-3-030-25443-8
  • Digitally watermarked, DRM-free
  • Included format: EPUB, PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Softcover 34,31 €
price for Spain (gross)
  • Due: September 11, 2019
  • ISBN 978-3-030-25442-1
  • Free shipping for individuals worldwide
  • The final prices may differ from the prices shown due to specifics of VAT rules
Loading...

Recommended for you

Loading...

Bibliographic Information

Bibliographic Information
Book Title
Mathematics of Finance
Book Subtitle
An Intuitive Introduction
Authors
Series Title
Undergraduate Texts in Mathematics
Copyright
2019
Publisher
Springer International Publishing
Copyright Holder
Springer Nature Switzerland AG
eBook ISBN
978-3-030-25443-8
DOI
10.1007/978-3-030-25443-8
Softcover ISBN
978-3-030-25442-1
Series ISSN
0172-6056
Edition Number
1
Number of Pages
XVII, 144
Number of Illustrations
16 b/w illustrations
Topics