An Introduction to Financial Mathematics Option Valuation 2nd Edition

When it comes to mastering the field of financial mathematics and option valuation, the 2nd edition of “An Introduction to Financial Mathematics Option Valuation” is a must-have resource. Authored by Susan W. Hardwick, this book offers a comprehensive overview of the principles and models used in the valuation of financial derivatives.

The book is structured into fifteen chapters, with the initial ten focusing on option valuation techniques in discrete time, and the final five delving into continuous-time models. The first half of the textbook lays the foundation with basic finance and probability concepts. The author then uses the binomial model as a primary example of discrete-time option valuation, leading up to a detailed exploration of the Black-Scholes model.

One of the standout features of this second edition is the inclusion of new exercises and examples, as well as a wealth of tables and graphs generated by more than 30 MS Excel VBA modules provided by the author. This aids in practical application and understanding of the principles discussed in the book.

For those looking to deepen their understanding of financial mathematics and option valuation, this book serves as an invaluable resource that bridges theory with real-world application.

### FAQ

#### What topics are covered in this book?
This book covers fundamental finance and probability concepts, discrete-time option valuation using the binomial model, and continuous-time models like the Black-Scholes model.

#### Are there practical exercises included in the book?
Yes, the second edition includes new exercises and examples to help readers apply the principles of option pricing in practical scenarios.

#### How can I access the MS Excel VBA modules mentioned in the book?
The author provides over 30 MS Excel VBA modules to accompany the book, aiding in the generation of tables and graphs for better understanding of the concepts.

### Conclusion

“An Introduction to Financial Mathematics Option Valuation 2nd Edition” by Susan W. Hardwick offers a thorough and accessible guide to mastering option valuation techniques in the realm of financial mathematics. With its focus on bridging theory with application and the inclusion of practical exercises and MS Excel VBA modules, this book is a valuable resource for students and professionals alike looking to deepen their knowledge in this field.