This second edition - completely up to date with new exercises - provides a comprehensive and self-contained treatment of the probabilistic theory behind the ri

This book presents techniques for valuing derivative securities at a level suitable for practitioners, students in doctoral programs in economics and finance, a

During 1995 the Isaac Newton Institute for the Mathematical Sciences at Cambridge University hosted a six month research program on financial mathematics. Durin

Valuation and hedging of financial derivatives are intrinsically linked concepts. Choosing appropriate hedging techniques depends on both the type of derivative

This is the first book about the emerging field of utility indifference pricing for valuing derivatives in incomplete markets. René Carmona brings together a w