19 Jun 2009
Directed at an audience of MBA and advanced BBA students, this book teaches the core theoretical concepts of options pricing. The book starts by introducing the simplest model of an equity market. The no-arbitrage condition is defined and, in a subsequent chapter, is used to value simplified financial assets. Gradually, the book extends the simple model to a more realistic situation, permitting the valuation of more complicated securities. MATLAB programs help readers visualize payoffs and respond to various constraints and conditions.