This textbook is an elementary introduction to the key topics in
mathematical finance and financial economics - two realms of ideas
that substantially overlap but are often treated separately from
each other. Our goal is to present the highlights in the field,
with the emphasis on the financial and economic content of the
models, concepts and results. The book provides a novel, unified
treatment of the subject by deriving each topic from common
fundamental principles and showing the interrelations between the
key themes. Although the presentation is fully rigorous, with some
rare and clearly marked exceptions, the book restricts itself to
the use of only elementary mathematical concepts and techniques. No
advanced mathematics (such as stochastic calculus) is used.
General
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