Overview: Presents a general theory of risk premium, pricing, and hedging of financial contracts that allows for a complete solution of problems.Uses a practical perspective with examples relevant to the financ.This book is written for quantitative finance professionals, students, educators, and mathematically inclined individual investors. It is about some of the latest developments in pricing, hedging, and investing in incomplete markets. With regard to pricing, two frameworks are fully elaborated: neutral and indifference pricing. With regard to hedging, the most conservative and relaxed he
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