Here is the first rigorous and accessible account of the mathematics behind the pricing, construction, and hedging of derivative securities. With mathematical precision and in a style tailored for market practioners, the authors describe key concepts such as martingales, change of measure, and the Heath-Jarrow-Morton model. Starting from discrete-time hedging on binary trees, the authors develop continuous-time stock models (including the Black-Scholes method). They stress practicalities including examples from stock, currency and interest rate markets, all accompanied by graphical illustrations with realistic data. The authors provide a full glossary of probabilistic and financial terms.

This is a print version of worked-out solutions for select odd-numbered problems found in the text. Electronic version included in Calculus: An Interactive Version.

Designed to enhance a traditional calculus curriculum, this text offers guidance in utilizing Mathematica to explore calculus concepts. Focusing on the process of mathematics rather than on finding single right answers, this book involves students in actively observing and analyzing mathematical principles using Mathematica to handle the manipulative work. With this text, students should learn to utilize Mathematica - particularly its numerical, symbolic, and graphing capabilities - to discover for themselves why mathematical principles work as they do, building stronger conceptual understanding in the process. The topics addressed involve sophisticated mathematics but also produce pictorial results, engaging students in the ideas and increasing their ability to view them geometrically. The activities should also develop students' sophistication in choosing and employing technology effectively.

This is a print version of worked-out solutions for select odd-numbered problems found in the text. An electronic version is included in "Calculus: An Interactive Version".

This package contains the following components:

-0321262522: MyMathLab

-0321691563: Introductory Mathematical Analysis for Business, Economics, and the Life and Social Sciences, Books a la Carte Edition