Probability Theory in Finance

Dineen (University College, Dublin) presumes undergraduate and graduate students using this text have completed a first course in calculus before working through this introduction to the Black- Scholes formula. He covers money and markets (including interest rates) fair games (including hedging and arbitrage), set theory, measurable functions (including the Borel field), probability spaces (including random variables and stochastic processes) expected values, continuity and integrability, conditional expectation, martingales (discrete, continuous, and in convergence), the Black- Scholes formula itself, and stochastic integration. Dineen provides a wealth of exercises and also their solutions. Annotation © 2006 Book News, Inc., Portland, OR