Mathematical Finance

This book provides a detailed study of Financial Mathematics. In addition to the extraordinary depth the book provides, it offers a study of the axiomatic approach that is ideally suited for analyzing financial problems. This book is addressed to MBA's, Financial Engineers, Applied Mathematicians, Banks, Insurance Companies, and Students of Business School, of Economics, of Applied Mathematics, of Financial Engineering, Banks, and more.

This book provides a detailed study of Financial Mathematics. In addition to the extraordinary depth the book provides, it offers a study of the axiomatic approach that is ideally suited for analyzing financial problems. This book is addressed to MBA's, Financial Engineers, Applied Mathematicians, Banks, Insurance Companies, and Students of Business School, of Economics, of Applied Mathematics, of Financial Engineering, Banks, and more.

Preface xviiPart I. Deterministic Models 1Chapter 1. Introductory Elements to Financial Mathematics 3Chapter 2. Theory of Financial Laws 13Chapter 3. Uniform Regimes in Financial Practice 41Chapter 4. Financial Operations and their Evaluation: DecisionalCriteria 91Chapter 5. Annuities-Certain and their Value at Fixed Rate147Chapter 6. Loan Amortization and Funding Methods 211Chapter 7. Exchanges and Prices on the Financial Market 289Chapter 8. Annuities, Amortizations and Funding in the Case ofTerm Structures 331Chapter 9. Time and Variability Indicators, ClassicalImmunization 363Part II. Stochastic Models 409Chapter 10. Basic Probabilistic Tools for Finance 411Chapter 11. Markov Chains 457Chapter 12. Semi-Markov Processes 481Chapter 13. Stochastic or Itô Calculus 517Chapter 14. Option Theory 553Chapter 15. Markov and Semi-Markov Option Models 607Chapter 16. Interest Rate Stochastic Models - Applicationto the Bond Pricing Problem 641Chapter 17. Portfolio Theory 687Chapter 18. Value at Risk (VaR) Methods and Simulation 703Chapter 19. Credit Risk or Default Risk 743Chapter 20. Markov and Semi-Markov Reward Processes andStochastic Annuities 791References 831Index 839