- A lot of this material is based on the sequence of topics found in :
“Risk Neutral Pricing and Financial Mathematics – A Primer”
by Peter M Knopf and John L. Teall - We will be dealing with the mathematics of finance, this will provide the building blocks for more advanced material
- It will involve merging ideas found in probability, stochastic calculus and finance (option pricing)
- Some prior knowledge is assumed, say “how to differentiate and integrate using standard techniques”, “some basics in matrices” and “some partial derivatives”
However, I will try to steer away from measure theory in probability but talk about it (and explain the basics) if the need arises. - The emphasis is on mathematics, hence it calls for lots of practice! We will learn by example or rather through examples. For details on derivatives, theory etc.you can refer to the book above (I will refer to it as Peter’s book)
