Title | Financial Mathematics |

Author(s) | Yuliya Mishura |

Publisher | ISTE Press – Elsevier; 1 edition (February 9, 2016) |

ISBN | ISBN-13: 978-1785480461ISBN-10: 1785480464 |

Length | 194 pages |

*Finance Mathematics* is devoted to financial markets both with discrete and continuous time, exploring how to make the transition from discrete to continuous time in option pricing. This book features a detailed dynamic model of financial markets with discrete time, for application in real-world environments, along with Martingale measures and martingale criterion and the proven absence of arbitrage.

With a focus on portfolio optimization, fair pricing, investment risk, and self-finance, the authors provide numerical methods for solutions and practical financial models, enabling you to solve problems both from mathematical and from financial point of view.

- Calculations of Lower and upper prices, featuring practical examples
- The simplest functional limit theorem proved for transition from discrete to continuous time
- Learn how to optimize portfolio in the presence of risk factors