Ebook: Introduction to Quantitative Methods for Financial Markets

Swaps, futures, options, structured instruments - a wide range of derivative products is traded in today's financial markets. Analyzing, pricing and managing such products often requires fairly sophisticated quantitative tools and methods. This book serves as an introduction to financial mathematics with special emphasis on aspects relevant in practice. In addition to numerous illustrative examples, algorithmic implementations are demonstrated using "Mathematica" and the software package "UnRisk" (available for both students and teachers). The content is organized in 15 chapters that can be treated as independent modules.

In particular, the exposition is tailored for classroom use in a Bachelor or Master program course, as well as for practitioners who wish to further strengthen their quantitative background.

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Swaps, futures, options, structured instruments - a wide range
of derivative products is traded in today's financial markets.
Analyzing, pricing and managing such products often requires
fairly sophisticated quantitative tools and methods. This book
serves as an introduction to financial mathematics with special
emphasis on aspects relevant in practice. In addition to numerous
illustrative examples, algorithmic implementations are demonstrated
using "Mathematica" and the software package "UnRisk" (available
for both students and teachers). The content is organized in 15
chapters that can be treated as independent modules.

In particular, the exposition is tailored for classroom use in a
Bachelor or Master program course, as well as for practitioners
who wish to further strengthen their quantitative background.

---

Swaps, futures, options, structured instruments - a wide range
of derivative products is traded in today's financial markets.
Analyzing, pricing and managing such products often requires
fairly sophisticated quantitative tools and methods. This book
serves as an introduction to financial mathematics with special
emphasis on aspects relevant in practice. In addition to numerous
illustrative examples, algorithmic implementations are demonstrated
using "Mathematica" and the software package "UnRisk" (available
for both students and teachers). The content is organized in 15
chapters that can be treated as independent modules.

In particular, the exposition is tailored for classroom use in a
Bachelor or Master program course, as well as for practitioners
who wish to further strengthen their quantitative background.

Content:
Front Matter....Pages i-ix
Interest, Coupons and Yields....Pages 1-14
Financial Products....Pages 15-26
The No-Arbitrage Principle....Pages 27-35
European and American Options....Pages 37-45
The Binomial Option Pricing Model....Pages 47-54
The Black-Scholes Model....Pages 55-62
The Black-Scholes Formula....Pages 63-75
Stock-Price Models....Pages 77-89
Interest Rate Models....Pages 91-102
Numerical Methods....Pages 103-115
Simulation Methods....Pages 117-131
Calibrating Models – Inverse Problems....Pages 133-141
Case Studies: Exotic Derivatives....Pages 143-153
Portfolio Optimization....Pages 155-169
Introduction to Credit Risk Models....Pages 171-183
Back Matter....Pages 185-191

---

Swaps, futures, options, structured instruments - a wide range
of derivative products is traded in today's financial markets.
Analyzing, pricing and managing such products often requires
fairly sophisticated quantitative tools and methods. This book
serves as an introduction to financial mathematics with special
emphasis on aspects relevant in practice. In addition to numerous
illustrative examples, algorithmic implementations are demonstrated
using "Mathematica" and the software package "UnRisk" (available
for both students and teachers). The content is organized in 15
chapters that can be treated as independent modules.

In particular, the exposition is tailored for classroom use in a
Bachelor or Master program course, as well as for practitioners
who wish to further strengthen their quantitative background.

Content:
Front Matter....Pages i-ix
Interest, Coupons and Yields....Pages 1-14
Financial Products....Pages 15-26
The No-Arbitrage Principle....Pages 27-35
European and American Options....Pages 37-45
The Binomial Option Pricing Model....Pages 47-54
The Black-Scholes Model....Pages 55-62
The Black-Scholes Formula....Pages 63-75
Stock-Price Models....Pages 77-89
Interest Rate Models....Pages 91-102
Numerical Methods....Pages 103-115
Simulation Methods....Pages 117-131
Calibrating Models – Inverse Problems....Pages 133-141
Case Studies: Exotic Derivatives....Pages 143-153
Portfolio Optimization....Pages 155-169
Introduction to Credit Risk Models....Pages 171-183
Back Matter....Pages 185-191
....