The authors use verbal and pictorial expositions, and sometimes simple mathematical models, to explain the underlying principles of hedging and pricing before proceeding to a formal analysis. Extensive uses of numerical examples for illustrative purposes are used throughout to s…
"It has been the authors' experience that the overwhelming majority of students in MBA derivatives courses go on to careers where a deep conceptual, rather than solely mathematical, understanding of products and models is required. The first edition of Derivatives looks to creat…
For those starting out as practitioners of mathematical finance, this is an ideal introduction. It provides the reader with a clear understanding of the intuition behind derivatives pricing, how models are implemented, and how they are used and adapted in practice. Strengths and…
Disks contain sixty modules that provide coverage of the various option pricing modules discussed in the text.