An Introduction to Quantitative Finance:A Three-Principle Approach
| Author | : | |
| Rating | : | 4.53 (602 Votes) |
| Asin | : | B0169N14U6 |
| Format Type | : | |
| Number of Pages | : | 123 Pages |
| Publish Date | : | 2014-05-16 |
| Language | : | English |
DESCRIPTION:
The author shows that a risk-based parsimonious model for modeling the shape of the yield curve, the arbitrage-free properties of options, the Black-Scholes and binomial pricing models, even the capital asset pricing model and the Modigliani-Miller propositions can be obtained systematically by applying the normative principles of Quantitative Finance.Request Inspection Copy. Inspired by Newton's three laws of motion, three principles of Quantitative Finance are proposed to help practitioners also to understand the pricing of plain vanilla derivatives and fixed income securities.The book provides a refreshing perspective on Box's thesis that "all models are wrong, but some are useful." Being practice- and market-oriented, the author focuses on financial derivatives that matter most to practitioners.The three principles of Quantitative Finance serve a