This book provides an introduction to the mathematical modelling of real world financial markets and the rational pricing of derivatives, which is part of the t

Derivatives are financial entities whose value is derived from the value of other more concrete assets such as stocks and commodities. They are an important ing

A rigorous introduction to the mathematics of pricing, construction and hedging of derivative securities.

This book is a collection of original papers by Robert Jarrow that contributed to significant advances in financial economics. Divided into three parts, Part I

Relying on the existence, in a complete market, of a pricing kernel, this book covers the pricing of assets, derivatives, and bonds in a discrete time, complete