This is an introduction to
quantitative finance based on a non-standard perspective called the
"benchmark approach." This prices using "real world" probabilities and a
"growth optimal portfolio" as numeraire. This approach offers a number
of advantages over the traditional risk-neutral framework, but it is
non-standard. While the book is written as an introduction, starting
with basic concepts in probability theory, progressing through
stochastic calculus and then developing financial concepts, the ideas
presented in the second half of the book are likely to appeal primarily
to theoreticians ...