Risk neutral pricing and financial mathematics : a primer

__Risk Neutral Pricing and Financial Mathematics: A Primer__ provides a foundation to financial mathematics for those whose undergraduate quantitative preparation does not extend beyond calculus, statistics, and linear math. It covers a broad range of foundation topics related to financial modeling, including probability, discrete and continuous time and space valuation, stochastic processes, equivalent martingales, option pricing, and term structure models, along with related valuation and hedging techniques. The joint effort of two authors with a combined 70 years of academic and practitioner experience, __Risk Neutral Pricing and Financial Mathematics__ takes a reader from learning the basics of beginning probability, with a refresher on differential calculus, all the way to Doob-Meyer, Ito, Girsanov, and SDEs. It can also serve as a useful resource for actuaries preparing for Exams FM and MFE (Society of Actuaries) and Exams 2 and 3F (Casualty Actuarial Society). * Includes more subjects than other books, including probability, discrete and continuous time and space valuation, stochastic processes, equivalent martingales, option pricing, term structure models, valuation, and hedging techniques * Emphasizes introductory financial engineering, financial modeling, and financial mathematics * Suited for corporate training programs and professional association certification programs

Risk Neutral Pricing and Financial Mathematics: A Primer provides a foundation to financial mathematics for those whose undergraduate quantitative preparation does not extend beyond calculus, statistics, and linear math. It covers a broad range of foundation topics related to financial modeling, including probability, discrete and continuous time and space valuation, stochastic processes, equivalent martingales, option pricing, and term structure models, along with related valuation and hedging techniques. The joint effort of two authors with a combined 70 years of academic and practitioner experience, Risk Neutral Pricing and Financial Mathematics takes a reader from learning the basics of beginning probability, with a refresher on differential calculus, all the way to Doob-Meyer, Ito, Girsanov, and SDEs. It can also serve as a useful resource for actuaries preparing for Exams FM and MFE (Society of Actuaries) and Exams 2 and 3F (Casualty Actuarial Society).

• Includes more subjects than other books, including probability, discrete and continuous time and space valuation, stochastic processes, equivalent martingales, option pricing, term structure models, valuation, and hedging techniques
• Emphasizes introductory financial engineering, financial modeling, and financial mathematics
• Suited for corporate training programs and professional association certification programs

Content: Front-matter,Copyright,Dedication,About the Authors,PrefaceEntitled to full textChapter 1 - Preliminaries and Review, Pages 1-32 Chapter 2 - Probability and Risk, Pages 33-68 Chapter 3 - Discrete Time and State Models, Pages 69-98 Chapter 4 - Continuous Time and State Models, Pages 99-122 Chapter 5 - An Introduction to Stochastic Processes and Applications, Pages 123-164 Chapter 6 - Fundamentals of Stochastic Calculus, Pages 165-206 Chapter 7 - Derivatives Pricing and Applications of Stochastic Calculus, Pages 207-245 Chapter 8 - Mean-Reverting Processes and Term Structure Modeling, Pages 247-274 Appendix A - The z-table, Page 275 Appendix B - Exercise Solutions, Pages 277-318 Appendix C - Glossary of Symbols, Pages 319-321 Glossary of Terms, Pages 323-328 Index, Pages 329-334