The Mathematics of Financial Derivatives

This book offers an applied mathematician's perspective on modeling financial derivatives, covering analysis and computation, with a focus on partial differential equations and numerical solutions, along with over 140 exercises.

The Mathematics of Financial Derivatives offers an insightful exploration into the modeling of financial derivative products through the lens of applied mathematics. As finance continues to be a rapidly evolving sector within the banking and corporate landscape, the demand for sophisticated mathematical models has surged. This book responds to that demand by presenting a comprehensive approach to understanding and analyzing financial derivatives, making it a valuable resource for those interested in the intersection of mathematics and finance.

The authors provide a unified framework for modeling derivative products, utilizing partial differential equations as a foundational tool. They emphasize the importance of numerical solutions where applicable, ensuring that readers can grasp the practical applications of the theoretical concepts discussed. While some prior knowledge of mathematics is assumed, the authors take care to explain more complex topics clearly, making the material accessible to a broad audience. This approach allows readers to build a solid understanding of the subject matter, regardless of their initial level of expertise.

With over 140 exercises included, the book not only serves as a theoretical introduction but also encourages practical engagement with the material. This makes it an ideal text for advanced undergraduate students who are looking to delve into this exciting field. By bridging the gap between abstract mathematical theories and their real-world applications in finance, The Mathematics of Financial Derivatives stands as a foundational text for anyone interested in the mathematical underpinnings of financial products.