An Introduction to Mathematical Finance: Options and Other Topics by Sheldon M. Ross
An Introduction to Mathematical Finance: Options and Other Topics by Sheldon M. Ross
Cambridge University Press | August 28, 1999 | English | ISBN: 0521770432 | 184 pages | PDF | 37 MB
Cambridge University Press | August 28, 1999 | English | ISBN: 0521770432 | 184 pages | PDF | 37 MB
This mathematically elementary introduction to the theory of options pricing presents the Black-Scholes theory of options as well as introducing such topics in finance as the time value of money, mean variance analysis, optimal portfolio selection, and the capital assets pricing model. The author assumes no prior knowledge of probability and presents all the necessary preliminary material simply and clearly. He explains the concept of arbitrage with examples, and then uses the arbitrage theorem, along with an approximation of geometric Brownian motion, to obtain a simple derivation of the Black-Scholes formula.