Option Theory with Stochastic Analysis: An Introduction to Mathematical Finance

Since 1972 and the appearance of the famous Black & Scholes option pric­ ing formula, derivatives have become an integrated part of everyday life in the financial industry. Options and derivatives are tools to control risk exposure, and used in the strategies of investors speculating in markets like fixed-income, sks, currencies, commodities and energy. A combination of mathematical and economical reasoning is used to find the price of a derivatives contract. This book gives an introduction...