ABSTRACT

Unlike much of the existing literature, Stochastic Finance: A Numeraire Approach treats price as a number of units of one asset needed for an acquisition of a unit of another asset instead of expressing prices in dollar terms exclusively. This numeraire approach leads to simpler pricing options for complex products, such as barrier, lookback, quant

chapter 1|58 pages

Elements of Finance

chapter 2|32 pages

Binomial Models

chapter 3|46 pages

Diffusion Models

chapter 4|12 pages

Interest Rate Contracts

chapter 5|22 pages

Barrier Options

chapter 6|20 pages

Lookback Options

chapter 7|16 pages

American Options

chapter 9|20 pages

Asian Options

chapter 10|28 pages

Jump Models