Quantitative Finance : An Introduction to Investments, Asset Pricing, and Derivatives

A graduate-level, mathematically rigorous introduction to the tools, methods, and approaches used in contemporary quantitative financeThis book offers a theory-oriented introduction to investments, asset pricing, and derivatives.Designed for a quantitative master’s program in finance, it is grounded by what works in the classroom.Presenting its topics in a unified, self-contained framework, the book is specifically appropriate for courses in asset pricing and derivatives pricing but may also be used for courses in investments, asset management, and portfolio management.Students will learn how to make decisions under uncertainty and over time, how to choose an investment portfolio, and how to characterize the prices and returns of financial assets in equity, bond, and derivative markets.The book focuses on a number of classical models and theories in quantitative finance and covers selected advanced and newer topics in its final section.Proofs and in-depth theoretical results within qua