Financial Math

<body topmargin="0" leftmargin="0" stylesrc="../_private/template_title.htm" bgcolor="#FFFFFF" link="#333366" vlink="#000000" alink="#000000"> <table border="0" cellspacing="0" width="100%" cellpadding="10" style="border-collapse: collapse" bordercolor="#111111" id="table8"> <tr> <td width="100%" bgcolor="#FFFFCC"> <p class="header_black">Mathematics: <span class="header_gold">Financial Math</span></td> </tr> </table> <div align="left"> <table border="0" cellspacing="4" style="border-collapse: collapse" bordercolor="#111111" width="100%" cellpadding="0" id="table9"> <tr> <td width="740" bgcolor="#FFFFFF"> <div align="center"> <table border="0" cellpadding="10" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="468" id="table10"> <tr> <td> <script type="text/javascript"></script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script> </td></tr> </table> <table border="0" cellpadding="6" cellspacing="0" height="206" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table11"> <tr> <td valign="top" align="right" height="198" width="150"> <p align="left"> <map name="FPMap53"> <area href="../titles/kritzman_mark_(2003).htm" shape="rect" coords="0, 0, 130, 199"> </map> <img border="0" src="../images/book_kritzman_mark_(2003).gif" usemap="#FPMap53" width="131" height="200"></td> <td valign="top" align="left" height="198"> <table border="0" cellspacing="1" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0" width="100%" id="table12"> <tr> <td width="100%"> <p class="book_title">The Portable Financial Analyst</td> </tr> <tr> <td width="102%" class="book_details_tags" valign="top" height="16" align="left"> <table border="0" cellpadding="2" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table13"> <tr> <td width="100%" colspan="4"> <p class="book_details">Mark P. Kritzman</td> </tr> <tr> <td width="50" class="book_details_tags"> <map name="FPMap51"> <area href="../main/ratings.htm" shape="rect" coords="0, 0, 89, 15"> </map><img border="0" src="../images/star_5.gif" usemap="#FPMap51" width="90" height="16"></td> <td width="25" class="book_details_tags"> <map name="FPMap52"> <area href="../main/ratings.htm" shape="rect" coords="0, 0, 89, 15"> </map><img border="0" src="../images/tech_2.gif" usemap="#FPMap52" width="90" height="16"></td> <td width="25" class="book_details_tags"> 2003</td> <td width="100%" class="book_details_tags"> <p align="right"><map name="FPMap54"> <area target="_self" href="../titles/kritzman_mark_(2003).htm" shape="rect" coords="0, 0, 90, 25" > </map> <img border="0" src="../images/pointer_review.gif" usemap="#FPMap54" width="90" height="25" ></td> </tr> </table> </td> </tr> <tr> <td class="book_details_tags" valign="top" align="left"> <p class="body"><strong style="font-weight: 400">This is a handy book with short chapters describing various topics in financial mathematics. There is a chapter on duration and convexity, another on hypothesis testing, still another on regression—twenty-five chapters in all. Most of the chapters originally appeared as "how-to" articles in the <i>Financial Analysts Journal</i></strong> ... <a href="../titles/kritzman_mark_(2003).htm">Read more</a></td> </tr> </table> </td> </tr> </table> <div align="center"> <div align="center"> <table border="0" cellpadding="6" cellspacing="0" height="206" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table14"> <tr> <td valign="top" align="right" height="198" width="150"> <p align="left"> <map name="FPMap426"> <area href="../titles/cox_and_cox_(2006).htm" shape="rect" coords="0, 0, 139, 199"> </map> <img border="0" src="../images/book_cox_and_cox_(2006).gif" width="140" height="200" usemap="#FPMap426"></td> <td valign="top" align="left" height="198"> <table border="0" cellspacing="1" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0" width="100%" id="table15"> <tr> <td width="100%"> <p class="book_title">The Mathematics of Banking and Finance</td> </tr> <tr> <td width="102%" class="book_details_tags" valign="top" height="16" align="left"> <table border="0" cellpadding="2" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table16"> <tr> <td width="100%" colspan="4"> <p class="book_details">Dennis Cox and Michael Cox</td> </tr> <tr> <td width="50" class="book_details_tags"> <map name="FPMap427"> <area href="../main/ratings.htm" shape="rect" coords="0, 0, 89, 15"> </map> <img border="0" src="../images/star_3.gif" width="90" height="16" usemap="#FPMap427"></td> <td width="25" class="book_details_tags"> <map name="FPMap428"> <area href="../main/ratings.htm" shape="rect" coords="0, 0, 89, 15"> </map> <img border="0" src="../images/tech_2.gif" width="90" height="16" usemap="#FPMap428"></td> <td width="25" class="book_details_tags"> 2006</td> <td width="100%" class="book_details_tags"> <p align="right"><map name="FPMap429"> <area target="_self" href="../titles/cox_and_cox_(2006).htm" shape="rect" coords="0, 0, 90, 25" > </map> <img border="0" src="../images/pointer_review.gif" usemap="#FPMap429" width="90" height="25" ></td> </tr> </table> </td> </tr> <tr> <td class="book_details_tags" valign="top" align="left"> <p class="body"><strong style="font-weight: 400">A better title for this book would be "Elementary Statistics for Junior Analysts." It walks readers through data visualization, basic probability, hypothesis testing, regression, analysis of variance, linear programming, Monte Carlo simulation, time series analysis, etc. There is actually very little about banking or finance</strong> ... <a href="../titles/cox_and_cox_(2006).htm">Read more</a></td> </tr> </table> </td> </tr> </table> </div> <table border="0" cellpadding="6" cellspacing="0" height="206" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table17"> <tr> <td valign="top" align="right" height="198" width="150"> <p align="left"> <map name="FPMap3"> <area href="../titles/focardi_and_fabozzi_(2004).htm" shape="rect" coords="0, 0, 132, 199"> </map> <img border="0" src="../images/book_focardi_and_fabozzi_(2004).gif" usemap="#FPMap3" width="133" height="200"></td> <td valign="top" align="left" height="198"> <table border="0" cellspacing="1" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0" width="100%" id="table18"> <tr> <td width="100%"> <p class="book_title">Mathematics<br> <font style="font-size: 11pt">of Financial Modeling & Investment Management</font></td> </tr> <tr> <td width="102%" class="book_details_tags" valign="top" height="16" align="left"> <table border="0" cellpadding="2" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table19"> <tr> <td width="100%" colspan="4"> <p class="book_details">Sergio Focardi and Frank Fabozzi</td> </tr> <tr> <td width="50" class="book_details_tags"> <map name="FPMap430"> <area href="../main/ratings.htm" shape="rect" coords="0, 0, 89, 15"> </map> <img border="0" src="../images/star_6.gif" usemap="#FPMap430" width="90" height="16"></td> <td width="25" class="book_details_tags"> <map name="FPMap2"> <area href="../main/ratings.htm" shape="rect" coords="0, 0, 89, 15"> </map> <img border="0" src="../images/tech_3.gif" usemap="#FPMap2" width="90" height="16"></td> <td width="25" class="book_details_tags"> 2004</td> <td width="100%" class="book_details_tags"> <p align="right"><map name="FPMap55"> <area target="_self" href="../titles/focardi_and_fabozzi_(2004).htm" shape="rect" coords="0, 0, 90, 25" > </map> <img border="0" src="../images/pointer_review.gif" usemap="#FPMap55" width="90" height="25" ></td> </tr> </table> </td> </tr> <tr> <td class="book_details_tags" valign="top" align="left"> <p class="body"><strong style="font-weight: 400">Finance is only the second field of human endeavor (after physics) that draws on essentially every branch of mathematics: calculus, linear algebra, probability, differential equations, measure theory, stochastic calculus. This outstanding reference surveys it all, detailing results that are important for financial professionals and illustrating them with examples</strong> ... <a href="../titles/focardi_and_fabozzi_(2004).htm">Read more</a></td> </tr> </table> </td> </tr> </table> <div align="center"> <table border="0" cellpadding="6" cellspacing="0" height="206" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table20"> <tr> <td valign="top" align="right" height="198" width="150"> <p align="left"> <map name="FPMap411"> <area href="../titles/chavas_jeanpaul_(2004).htm" shape="rect" coords="0, 0, 131, 199"> </map> <img border="0" src="../images/book_chavas_jean_(2004).jpg" usemap="#FPMap411" width="132" height="200"></td> <td valign="top" align="left" height="198"> <table border="0" cellspacing="1" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0" width="100%" id="table21"> <tr> <td width="100%"> <p class="book_title">Risk Analysis in Theory and Practice</td> </tr> <tr> <td width="102%" class="book_details_tags" valign="top" height="16" align="left"> <table border="0" cellpadding="2" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table22"> <tr> <td width="100%" colspan="4"> <p class="book_details">Jean-Paul Chavas</td> </tr> <tr> <td width="50" class="book_details_tags"> <map name="FPMap412"> <area coords="0, 0, 89, 15" shape="rect" href="../main/ratings.htm"> </map><img border="0" src="../images/star_5.gif" usemap="#FPMap412" width="90" height="16"></td> <td width="25" class="book_details_tags"> <map name="FPMap413"> <area href="../main/ratings.htm" shape="rect" coords="0, 0, 89, 15"> </map><img border="0" src="../images/tech_3.gif" usemap="#FPMap413" width="90" height="16"></td> <td width="25" class="book_details_tags"> 2004</td> <td width="100%" class="book_details_tags"> <p align="right"><map name="FPMap414"> <area target="_self" href="../titles/chavas_jeanpaul_(2004).htm" shape="rect" coords="0, 0, 90, 25" > </map> <img border="0" src="../images/pointer_review.gif" usemap="#FPMap414" width="90" height="25" ></td> </tr> </table> </td> </tr> <tr> <td class="book_details_tags" valign="top" align="left"> <p class="body"><strong style="font-weight: 400">This is a foundational book. It explores the mathematical models of risk that underlie much of economics and essentially all of finance. The classic debates are presented—Knight's controversial distinction between risk and uncertainty; subjective vs. objective interpretations of probability, etc. Empirical tools </strong> ... <a href="../titles/chavas_jeanpaul_(2004).htm">Read more</a></td> </tr> </table> </td> </tr> </table> </div> <div align="center"> <div align="center"> <table border="0" cellpadding="6" cellspacing="0" height="206" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table23"> <tr> <td valign="top" align="right" height="198" width="150"> <p align="left"> <map name="FPMap419"> <area href="../titles/maringer_dietmar_(2005).htm" shape="rect" coords="0, 0, 135, 199"> </map> <img border="0" src="../images/book_maringer_d_(2005).jpg" usemap="#FPMap419" width="136" height="200"></td> <td valign="top" align="left" height="198"> <table border="0" cellspacing="1" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0" width="100%" id="table24"> <tr> <td width="100%"> <p class="book_title">Portfolio Management with Heuristic Optimization</td> </tr> <tr> <td width="102%" class="book_details_tags" valign="top" height="16" align="left"> <table border="0" cellpadding="2" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table25"> <tr> <td width="100%" colspan="4"> <p class="book_details">Dietmar Maringer</td> </tr> <tr> <td width="50" class="book_details_tags"> <map name="FPMap420"> <area href="../main/ratings.htm" shape="rect" coords="0, 0, 89, 15"> </map> <img border="0" src="../images/star_5.gif" usemap="#FPMap420" width="90" height="16"></td> <td width="25" class="book_details_tags"> <map name="FPMap421"> <area href="../main/ratings.htm" shape="rect" coords="0, 0, 89, 15"> </map> <img border="0" src="../images/tech_3.gif" usemap="#FPMap421" width="90" height="16"></td> <td width="25" class="book_details_tags"> 2005</td> <td width="100%" class="book_details_tags"> <p align="right"><map name="FPMap422"> <area target="_self" href="../titles/maringer_dietmar_(2005).htm" shape="rect" coords="0, 0, 90, 25" > </map> <img border="0" src="../images/pointer_review.gif" usemap="#FPMap422" width="90" height="25" ></td> </tr> </table> </td> </tr> <tr> <td class="book_details_tags" valign="top" align="left"> <p class="body"><strong style="font-weight: 400">This is a nice book that looks at optimization from a financial perspective. It introduces readers to a category of optimization techniques called heuristic optimization and applies them to financial tasks, especially portfolio optimization</strong> ... <a href="../titles/maringer_dietmar_(2005).htm">Read more</a></td> </tr> </table> </td> </tr> </table> <div align="center"> <table border="0" cellpadding="6" cellspacing="0" height="206" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table26"> <tr> <td valign="top" align="right" height="198" width="150"> <p align="left"> <map name="FPMap4"> <area coords="0, 0, 134, 199" shape="rect" href="../titles/minenna_marcello_(2006).htm"> </map> <img border="0" src="../images/book_minenna_marcello_(2006).gif" width="135" height="200" usemap="#FPMap4"></td> <td valign="top" align="left" height="198"> <table border="0" cellspacing="1" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0" width="100%" id="table27"> <tr> <td width="100%"> <p class="book_title"><font size="3">A Guide to </font><br> Quantitative Finance</td> </tr> <tr> <td width="102%" class="book_details_tags" valign="top" height="16" align="left"> <table border="0" cellpadding="2" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table28"> <tr> <td width="100%" colspan="4"> <p class="book_details">Marcello Minenna</td> </tr> <tr> <td width="50" class="book_details_tags"> <map name="FPMap423"> <area href="../main/ratings.htm" shape="rect" coords="0, 0, 89, 15"> </map> <img border="0" src="../images/star_4.gif" width="90" height="16" usemap="#FPMap423"></td> <td width="25" class="book_details_tags"> <map name="FPMap424"> <area href="../main/ratings.htm" shape="rect" coords="0, 0, 89, 15"> </map> <img border="0" src="../images/tech_4.gif" width="90" height="16" usemap="#FPMap424"></td> <td width="25" class="book_details_tags"> 2006</td> <td width="100%" class="book_details_tags"> <p align="right"><map name="FPMap425"> <area target="_self" href="../titles/minenna_marcello_(2006).htm" shape="rect" coords="0, 0, 90, 25" > </map> <img border="0" src="../images/pointer_review.gif" usemap="#FPMap425" width="90" height="25" ></td> </tr> </table> </td> </tr> <tr> <td class="book_details_tags" valign="top" align="left"> <p class="body"><strong style="font-weight: 400">This is an ambitious book. The goal is to walk readers through the mathematics underlying financial engineering and then illustrate with standard financial engineering results. The book does just that—in 523 pages</strong> ... <a href="../titles/minenna_marcello_(2006).htm">Read more</a></td> </tr> </table> </td> </tr> </table> </div> </div> <table border="0" cellpadding="6" cellspacing="0" height="206" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table29"> <tr> <td valign="top" align="right" height="198" width="150"> <p align="left"> <map name="FPMap407"> <area href="../titles/cherubini_luciano_vecchiato_(2004).htm" shape="rect" coords="0, 0, 134, 199"> </map> <img border="0" src="../images/book_cherubini_luciano_vecchiato_(2004).jpg" usemap="#FPMap407" width="135" height="200"></td> <td valign="top" align="left" height="198"> <table border="0" cellspacing="1" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0" width="100%" id="table30"> <tr> <td width="100%"> <p class="book_title">Copula Methods in Finance</td> </tr> <tr> <td width="102%" class="book_details_tags" valign="top" height="16" align="left"> <table border="0" cellpadding="2" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table31"> <tr> <td width="100%" colspan="4"> <p class="book_details">U. Cherubini, E. Luciano, W. Vecchiato</td> </tr> <tr> <td width="50" class="book_details_tags"> <map name="FPMap410"> <area href="../main/ratings.htm" shape="rect" coords="0, 0, 89, 15"> </map> <img border="0" src="../images/star_6.gif" usemap="#FPMap410" width="90" height="16"></td> <td width="25" class="book_details_tags"> <map name="FPMap408"> <area href="../main/ratings.htm" shape="rect" coords="0, 0, 89, 15"> </map> <img border="0" src="../images/tech_5.gif" usemap="#FPMap408" width="90" height="16"></td> <td width="25" class="book_details_tags"> 2004</td> <td width="100%" class="book_details_tags"> <p align="right"><map name="FPMap409"> <area target="_self" href="../titles/cherubini_luciano_vecchiato_(2004).htm" shape="rect" coords="0, 0, 90, 25" > </map> <img border="0" src="../images/pointer_review.gif" usemap="#FPMap409" width="90" height="25" ></td> </tr> </table> </td> </tr> <tr> <td class="book_details_tags" valign="top" align="left"> <p class="body"><strong style="font-weight: 400">Copulas are currently one of the hot topics in quantitative finance. In a nutshell, copulas are a generalization of correlation. Suppose you have marginal distributions for the components of a random vector. With copulas, you can fill in the interdependencies between those components to obtain the joint distribution of the random vector. Depending on what copula you use, you can achieve different interdependencies</strong> ... <a href="../titles/cherubini_luciano_vecchiato_(2004).htm">Read more</a></td> </tr> </table> </td> </tr> </table> <table border="0" cellpadding="10" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="468" id="table32"> <tr> <td> <script type="text/javascript"></script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script> </td></tr> </table> </div> </div> </div> </td> <td bgcolor="#FFFFFF">  </td> </tr> </table> </div> <div align="center"> <center> <table border="0" cellpadding="10" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table33"> <tr> <td width="50%" bgcolor="#FFFFCC" align="left" valign="top"> <script type="text/javascript"></script> <script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js"> </script> </td><td width="50%" bgcolor="#CCCCFF" align="left" valign="top"> <p class="body" style="margin-bottom: 6; margin-left:5; margin-top:5"><b> <font color="#333366" size="3">For related books, also see sections:</font></b></p> <p class="body" style="margin-bottom: 6; margin-left:5; margin-top:5"> <img border="0" src="../images/bullet.gif" width="20" height="10"><a target="_top" href="../link_topic/math_software.htm">Math - Analytic Software</a></p> <p class="bullet_line_space" style="margin-left: 5"> <img border="0" src="../images/bullet.gif" width="20" height="10"><a target="_top" href="../link_topic/financial_engineering_basic.htm">Financial Engineering - Basic Theory</a></p> <p class="bullet_line_space" style="margin-left: 5"> <img border="0" src="../images/bullet.gif" width="20" height="10"><a target="_top" href="../link_topic/risk_management_market_risk.htm">Risk Management - Market Risk</a></p> <p class="bullet_line_space" style="margin-left: 5"> <img border="0" src="../images/bullet.gif" width="20" height="10"><a target="_top" href="../link_topic/risk_management_credit_institutional.htm">Risk Management - Credit Risk</a></p> <p class="bullet_line_space" style="margin-left: 5"> <img border="0" src="../images/bullet.gif" width="20" height="10"><a target="_top" href="../link_topic/finance_general.htm">Finance - General</a></p> <p class="bullet_line_space" style="margin-left: 5"> <img border="0" src="../images/bullet.gif" width="20" height="10"><a target="_top" href="../link_topic/portfolio_management_general.htm">Portfolio Management - General</a></p> <p class="bullet_line_space" style="margin-left: 5"> <img border="0" src="../images/bullet.gif" width="20" height="10"><a target="_top" href="../link_topic/other_functions_trading.htm">Other Functions - Trading</a></p> </td> </tr> </table> <table border="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%" cellpadding="10" bgcolor="#FFFFCC" id="table34"> <tr> <td width="100%">  <table border="0" style="border-collapse: collapse" width="100%" cellpadding="0" id="table1" bgcolor="#FFFFFF"> <tr> <td colspan="2" height="12"> <p style="margin-top: 0"> </td> </tr> <tr> <td align="right"> <p align="left" style="margin-bottom: 2px"> <a target="_top" href="http://www.riskexpertise.com/link/advertising.htm"> <font size="1" color="#000000" face="Arial">Ads by Contingency Analysis.</font></a></td> <td align="left"> <p align="right" style="margin-bottom: 2px"> <a target="_top" href="http://www.riskexpertise.com/link/advertising.htm"> <font size="1" color="#000000" face="Arial">Advertise on this site.</font></a></td> </tr> <tr> <td align="center" colspan="2">  <iframe src="http://servedbyadbutler.com/adserve/;ID=147917;size=300x250;setID=93136;type=iframe" allowtransparency="true" background-color="transparent" style="margin: 0px; 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