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Discrete Models of Financial Markets This book explains in simple settings the fundamental ideas of financial market modelling and derivative pricing, using the No Arbitrage Principle. Relatively elementary mathematics leads to powerful notions and techniques – such as viability, completeness, self-financing and replicating strategies, arbitrage and equivalent martingale measures – which are directly applicable in practice. The general methods are applied in detail to pricing an
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  Discrete Models of Financial Markets This book explains in simple settings the fundamental ideas of financialmarket modelling and derivative pricing, using the No Arbitrage Principle.Relatively elementary mathematics leads to powerful notions andtechniques – such as viability, completeness, self-financing and replicatingstrategies, arbitrage and equivalent martingale measures – which are directlyapplicable in practice. The general methods are applied in detail to pricingand hedging European and American options within the Cox–Ross–Rubinstein (CRR) binomial tree model. A simple approach to discrete interestrate models is included, which, though elementary, has some novel features.All proofs are written in a user-friendly manner, with each step carefullyexplained, and following a natural flow of thought. In this way the studentlearns how to tackle new problems. marek capi ´nski  has published over 50 research papers and nine books.His diverse interests include mathematical finance, corporate finance andstochastic hydrodynamics. For over 35 years he has been teaching thesetopics, mainly in Poland and in the UK, where he has held visitingfellowships. He is currently Professor of Applied Mathematics at AGHUniversity of Science and Technology in Krak ´ow, Poland. ekkehard kopp  is Emeritus Professor of Mathematics at the Universityof Hull, UK, where he taught courses at all levels in analysis, measure andprobability, stochastic processes and mathematical finance between 1970 and2007. His editorial experience includes service as founding member of theSpringer Finance series (1998–2008) and the CUP AIMS Library Series. Hehas authored more than 50 research publications and five books.  Mastering Mathematical Finance Mastering Mathematical Finance is a series of short books that cover allcoretopicsandthemostcommonelectivesofferedinMaster’sprogrammesin mathematical or quantitative finance. The books are closely coordinatedand largely self-contained, and can be used efficiently in combination butalso individually.The MMF books start financially from scratch and mathematically assumeonly undergraduate calculus, linear algebra and elementary probability the-ory. The necessary mathematics is developed rigorously, with emphasis onanaturaldevelopmentofmathematicalideasandfinancialintuition,andthereaders quickly see real-life financial applications, both for motivation andas the ultimate end for the theory. All books are written for both teachingand self-study, with worked examples, exercises and solutions. [DMFM]  Discrete Models of Financial Markets ,Marek Capi´nski, Ekkehard Kopp[PF]  Probability for Finance ,Ekkehard Kopp, Jan Malczak, Tomasz Zastawniak [SCF]  Stochastic Calculus for Finance ,Marek Capi´nski, Ekkehard Kopp, Janusz Traple[BSM]  The Black–Scholes Model ,Marek Capi´nski, Ekkehard Kopp[PTRM]  Portfolio Theory and Risk Management  ,Maciej Capi´nski, Ekkehard Kopp[NMFC]  Numerical Methods in Finance with C++ ,Maciej Capi´nski, Tomasz Zastawniak [SIR]  Stochastic Interest Rates ,Daragh McInerney, Tomasz Zastawniak [CR]  Credit Risk  ,Marek Capi´nski, Tomasz Zastawniak [FE]  Financial Econometrics ,Marek Capi´nski, Jian Zhang[SCAF]  Stochastic Control in Finance ,Szymon Peszat, Tomasz Zastawniak  Series editors  Marek Capi´nski,  AGH University of Science and Technol-ogy, Krak ´ ow ; Ekkehard Kopp,  University of Hull ; Tomasz Zastawniak, University of York 
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