## An Introduction to the Mathematics of Financial Derivatives
The increased interest in dynamic pricing models stems from their applicability to practical situations: with the freeing of exchange, interest rates, and capital controls, the market for derivative products has matured and pricing models have become more accurate. This updated edition has six new chapters and chapter-concluding exercises, plus one thoroughly expanded chapter. The text answers the need for a resource targeting professionals, Ph.D. students, and advanced MBA students who are specifically interested in financial derivatives. This edition is also designed to become the main text in first year masters and Ph.D. programs for certain courses, and will continue to be an important manual for market professionals and professionals with mathematical, technical, or physics backgrounds. |

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Excellent book

### Contents

1 | |

13 | |

Calculus in Deterministic and Stochastic Environments
| 45 |

Pricing Derivatives Models and Notation
| 77 |

Tools in Probability Theory
| 91 |

Martingales and Martingale Representations
| 119 |

Differentation in Stochastic Environments
| 156 |

The Weiner Process and Rare Events in Financial Markets
| 173 |

The BlackScholes PDE
| 296 |

Pricing Derivative Products
| 312 |

Equivalent Martingale Measures
| 345 |

New Results and Tools for InterestSensitive Securities
| 368 |

Arbitrage Theorem in a New Setting Normalization and Random Interest Rates | 379 |

Modeling Term Structure and Related Concepts
| 407 |

Classical and HJM Approaches to Fixed Income
| 426 |

Classical PDE Analysis for Interest Rate Derivatives
| 451 |

Integration in Stochastic Environments
| 204 |

Itos Lemma
| 230 |

The Dynamics of Derivative Prices
| 252 |

Pricing Derivative Products
| 275 |

Relating Conditional Expectations to PDEs
| 467 |

Stopping Times and AmericanType Securities
| 489 |

509 | |

513 | |

### Other editions - View all

An Introduction to the Mathematics of Financial Derivatives Ali Hirsa,Salih N. Neftci Limited preview - 2013 |

An Introduction to the Mathematics of Financial Derivatives Salih N. Neftci No preview available - 1996 |