ABOUT THIS BOOK
- Comprehensive introduction to financial derivatives modeling for graduate students and professionals
- Applies derivatives pricing methods to all major asset classes 
- Contains an extensive list of stochastic differential equations with solution methods 
- Includes a detailed description of the challenges associated with the calibration of, and risk management with, derivatives pricing models
This book gives a comprehensive introduction to the modeling of financial derivatives, covering all major asset classes (equities, commodities, interest rates and foreign exchange) and stretching from Black and Scholes' lognormal modeling to current-day research on skew and smile models. The intended reader has a solid mathematical background and is a graduate/final-year undergraduate student specializing in Mathematical Finance, or works at a financial institution such as an investment bank or a hedge fund.