This textbook in financial economics provides a rigorous overview of the subject that -- because of an innovative presentation -- is suitable for use with different levels of undergraduate and graduate students. Each chapter presents mathematical models of financial problems at three levels of sophistication: single-period, multi-period, and continuous-time. The single-period and multi-period models require only basic calculus and an introductory probability/statistics course, while an advanced undergraduate course in probability is helpful in understanding the continuous-time models. In this way the material is given complete coverage at different levels; the less advanced student can stop before the more sophisticated mathematics and still be able to grasp the general principles of financial economics.Then we borrow K 6aquot;aquot;(Ta#39;t) from the bank, buy the put and the stock from the borrowed money and still have some extra ... Then we borrow U(t) + K eaquot;(T_t) from the bank, use that money to buy the stock and the put option, and still have someanbsp;...

Title | : | Solutions Manual for Introduction to the Economics and Mathematics of Financial Markets |

Author | : | Jaksa Cvitanic, Fernando Zapatero |

Publisher | : | MIT Press - 2004 |

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