Stochastic Calculus for Finance I: The Binomial Asset Pricing Model (Springer Finance) 2004th Edition by Steven Shreve (PDF)

Description

Developed for the professional Master’s program in Computational Finance at Carnegie Mellon, the leading financial engineering program in the U.S.Has been tested in the classroom and revised over a period of several yearsExercises conclude every chapter; some of these extend the theory while others are drawn from practical problems in quantitative finance

User’s Reviews

Editorial Reviews: Review From the Back Cover Stochastic Calculus for Finance evolved from the first ten years of the Carnegie Mellon Professional Master’s program in Computational Finance. The content of this book has been used successfully with students whose mathematics background consists of calculus and calculus-based probability. The text gives both precise statements of results, plausibility arguments, and even some proofs, but more importantly intuitive explanations developed and refine through classroom experience with this material are provided. The book includes a self-contained treatment of the probability theory needed for stchastic calculus, including Brownian motion and its properties. Advanced topics include foreign exchange models, forward measures, and jump-diffusion processes.This book is being published in two volumes. The first volume presents the binomial asset-pricing model primarily as a vehicle for introducing in the simple setting the concepts needed for the continuous-time theory in the second volume.Chapter summaries and detailed illustrations are included. Classroom tested exercises conclude every chapter. Some of these extend the theory and others are drawn from practical problems in quantitative finance.Advanced undergraduates and Masters level students in mathematical finance and financial engineering will find this book useful.Steven E. Shreve is Co-Founder of the Carnegie Mellon MS Program in Computational Finance and winner of the Carnegie Mellon Doherty Prize for sustained contributions to education. About the Author Read more

Reviews from Amazon users which were colected at the time this book was published on the website:

⭐Shreve’s book is an excellent introduction to basic options pricing. He not only deals with plain vanilla options, but also shows how the binomial model can be used to to value exotic options. Each chapter has exercises which not only apply what is taught but force you to think and ensure that you really understand it.Little more than basic algebra is required to understand the text, making it very accessible. His expositions of topics such as martingales, markov processes, etc. are very good. The text can be dense, though–there’s a great deal of information.In short, if you want an introduction of how options can be priced without the partial differential equations in the Black-Scholes model, this is an excellent choice.

⭐The second part has much more to tell. and although based on the first part, could be studied separately. The first part is still a decent foundation for interested readers.

⭐It’s great book.

⭐No typo. Good quality. The examples are good for the understanding

⭐clear explanations on binomial models for European and American options. Abstract concepts also included such as change of measures, martingales, stopping times. Proofs in book assumed no knowledge on sigma fields or measure theory.

⭐very good

⭐Very solid intro to option pricing.

⭐I am a mathematics graduate degree student and I had to study this book along with volume 1 of this book. Those two books are by all means and measure the worst mathematic books ever written. The way the author wrote the books is vague. They are so theoretical. The author based his work on laying theory after theory, there is almost zero examples with in the sections, and when there is one, it introduces new ideas. Even the exercises at the end of each chapter are very difficult that all the student in my class just copied the solution manual. The exercises sometimes introduces new idea that have not been covered in the book and the student have to search them up.I am blaming the author solely because the topics considered in both boos, volume 1 & 2, are well researched topics in other areas of studies like Statistics and Engineering; however, the author didn’t bother to make his books stand alone books.The only way to study the book and understand it is actually by studying the topics in other books then coming back to this book and trying to connect the dots. I would say if you are NOT a student, don’t waste your time on this book at all, you will not only loose your money, you will also lose your time and effort. You are better off in searching the topics online !! I would prefer reding an advanced probability book or applied statistic book along with a book in stochastic calculus.And for the Finance part, this book has almost zero applications in Finance, I don’t even know why it is classified as financial math book, you would probably find a couple of finance problem in the whole book.In summary, the book so disconnected in the topics, the author does not consider his main audience being student that he must explain the topics more and add examples and more exercises and probably some solved exercises as well. At best, this book could be a publication paper were the author don’t care about the readers background and doesn’t care about explaining the topics as good as what other book authors does.

⭐I wish it described in more details it’s steps but if you spend more time on it, you’ll understand it well.

⭐Great book in a great condition

⭐great

⭐A nice introduction into derivative pricing for someone with no experience in finance (like myself). A good introduction/foundation before moving onto continuous models.

⭐This is absolutely one of the best textbooks I have used in university.The book provides a well laid-out introduction to financial mathematics. Volume I begins by focusing on the binomial asset pricing model. This model is discussed in discrete time and introduces many fundamental concepts including no-arbitrage, martingales, and Markov processes. Volume I shows how various European and American options can be modelled using probability theory. It also discusses is the change of measure between risk-neutral and actual probabilities using the Radon-Nikodym derivative. Later in Volume I, ideas including the principle for random walk, exotic options, and random interest rates are explored. Volume II looks at many of the same concepts as Volume I, using continuous-time, in addition to introducing numerous other concepts.What distinguishes this textbook from many others is the clarity it provides. While many textbooks contain text and pictures that are irrelevant to learning, this textbook is terse and allows concepts to be understood easily. Each chapter concludes with a concise summary and a wealth of exercises that require the reader’s serious thought about the chapter’s contents. Volume I and II, both contain enough content each to cover an entire upper year undergraduate mathematics course.The writing in the textbook is very concise and provides ideas in a straightforward manner, which is crucial when time is limited. I highly recommend this textbook looking for an introduction to financial mathematics. I look forward to reading the second book.

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Free Download Stochastic Calculus for Finance I: The Binomial Asset Pricing Model (Springer Finance) 2004th Edition in PDF format
Stochastic Calculus for Finance I: The Binomial Asset Pricing Model (Springer Finance) 2004th Edition PDF Free Download
Download Stochastic Calculus for Finance I: The Binomial Asset Pricing Model (Springer Finance) 2004th Edition 2004 PDF Free
Stochastic Calculus for Finance I: The Binomial Asset Pricing Model (Springer Finance) 2004th Edition 2004 PDF Free Download
Download Stochastic Calculus for Finance I: The Binomial Asset Pricing Model (Springer Finance) 2004th Edition PDF
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