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Financial Modelling with Jump Processes: Chapman & Hall/CRC Financial Mathematics

Autor Rama Cont, Peter Tankov
en Limba Engleză Hardback – 16 iul 2016
Including a new chapter on credit risk modelling and new developments in econometrics, the new edition of this bestselling resource provides an accessible overview of financials models based on jump processes used in risk management and option pricing. After presenting the necessary mathematics, the text presents theoretical, numerical, and empirical issues. While the emphasis is on demystifying technical difficulties so as to better understand applications, mathematical results are presented in a rigorous, though self-contained, manner, accessible to any reader having basic knowledge of the Black Scholes model. Concepts are illustrated through many numerical and empirical examples.
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Specificații

ISBN-13: 9781420082197
ISBN-10: 1420082191
Pagini: 606
Ilustrații: 100 black & white illustrations
Dimensiuni: 156 x 235 mm
Ediția:Revizuită
Editura: CRC Press
Seria Chapman & Hall/CRC Financial Mathematics


Public țintă

Graduate students and researchers interested in quantitative finance. Professionals involved in risk management, derivatives and quantitative research in financial institutions.

Cuprins

Overview. Mathematical tools. Simulation and estimation. Option pricing in models with jumps. Beyond Lévy processes. Appendices. Bibliography. Index.

Recenzii

"Pardon the pun, but I jumped at the opportunity to endorse this book. This book is the first complete treatment of markets rendered incomplete by the reality of jumps in prices and volatilities. If I were you, I would pounce."
-Dr. Peter Carr, Head of Quantitative Research, Bloomberg LP and Director of Masters Program in Mathematical Finance, NYU

"This book is an extremely rich source of information…the content speaks for itself…"
-ISI Short Book Reviews

"This book is an extremely rich source of information for recent developments in the use of jump processes in financial modelling, in particular the use of Levy processes. The authors work at a comfortable mathematical pace choosing carefully which proofs to include and exclude and never losing sight of financial interpretation and application.

"The authors conclude the main body of their text by saying: 'We hope that the present volume will encourage more researchers and practitioners to contribute to this topic and improve on our understanding of theoretical, numerical and practical issues related to financial modelling with jump processes'. I am quite convinced that this goal will be achieved."
-Dr. Andreas E. Kyprianou, International Statistics Institute book reviews

"What makes this book attractive is its comprehensiveness. … this is an excellent book. Read it. You will learn much."
-Glyn A. Holton, Contingency Analysis

"One of the first texts which is entirely devoted to option pricing with non-continuous jump-type stochastic processes … an easygoing presentation where the basic problems of jump models are not additionally obscured by technicalities."
-Journal of the Royal Statistics

"I love this book. It will be required reading for students entering Levy finance. My judgment is that it will be useful both within academia, particularly to people in stochastics, econometrics, and other fields wanting to develop an interest in finance, and to practitioners."
-N.H. Bingham, Journal of the American Statistical Association

Descriere

Descriere de la o altă ediție sau format:
Financial models based on jump processes are fast gaining popularity in risk management and option pricing applications. Much has been published on the subject, but most of the papers are difficult for nonspecialists to understand. This book provides an accessible overview of the theoretical, numerical, and empirical aspects of using jump processes in financial modeling. With clear explanations, the authors motivate the use of the various mathematical tools, and while giving an intuitive understanding of proofs, provide precise mathematical statements of the results. They illustrate concepts with many numerical and empirical examples and provide the details for implementing pricing and calibration algorithms.