Seán Dineen, University College Dublin, Ireland.

Dineen is doing something valuable by trying to find ways to communicate mathematics in a serious way to an audience that often gets little more than recipes and rules. It's a project definitely worth supporting." - MAA Reviews"In addition to the usual improvements in response to comments and suggestions, the new edition reflects the experience of teaching real analysis. ... Dineen is doing something valuable by trying to find ways to communicate mathematics in a serious way to an audience that often gets little more than recipes and rules. It's a project definitely worth supporting." - Fernando Q. Gouvêa, MAA ReviewsFrom reviews for the First Edition:"This book provides a thorough presentation of the mathematics behind the derivatives pricing formula. It is written for mathematicians as well as finance students or professionals ... very lucid ... an excellent choice for graduate students in mathematical finance as well as practitioners with the required background." - Ita Cirovic Donev, MAA Reviews"A neatly and lively written text that may be warmly recommended to undergraduates and graduate students in mathematics and finance." - EMS Newsletter"The author has done a very good job presenting the abstract probability theory needed to understand the derivation of the Black-Scholes formula, as well as the intuitive ideas, often simple, behind it. By starting with simple models in which the financial principles used can be clearly seen and then building smoothly toward the more complex model used in the Black-Scholes formula, the author allows the reader to appreciate the financial principles used even in the more complex settings. Furthermore, the exercises included after each chapter help the reader understand the material presented. ... Finally, the many historical footnotes often add insight and help bring the mathematics to life." - Errol Caby, AT&T Laboratories"For budding financial engineers, this is an outstanding introduction to the mathematics that underlies derivatives pricing theory. ... It also offers plenty of exercises that will help you build mastery... Dineen won an award (Best Books of 2006) for providing a treatment of finanical engineering math that is simultaneously accessible and rigorous." - Glyn Holton, founder Contingency Analysis and Riskbook.com"... an excellent choice ... This book provides a thorough presentation of the mathematics behind the derivatives pricing formula. It is written for mathematicians as well as finance students or professionals." - MAA Reviews"... one of the author's aims is to entice the students by the beauty of mathematics, which he illustrates very well. If a course instructor teaching from the book succeeds in this, my guess is that the course will be a great success... It outshines most of its competitors ... variety of nice exercises and solutions ..." - Mathematical Reviews

• Table of Contents:Money and markets Fair games Set theoryMeasurable functions Probability spaces Expected values Continuity and integrabilityConditional expectation Lebesgue measureMartingales The Black-Scholes formula Stochastic integrationSolutions BibliographyIndex

Seán Dineen, University College Dublin, Ireland.

Dineen is doing something valuable by trying to find ways to communicate mathematics in a serious way to an audience that often gets little more than recipes and rules. It's a project definitely worth supporting." - MAA Reviews"In addition to the usual improvements in response to comments and suggestions, the new edition reflects the experience of teaching real analysis. ... Dineen is doing something valuable by trying to find ways to communicate mathematics in a serious way to an audience that often gets little more than recipes and rules. It's a project definitely worth supporting." - Fernando Q. Gouvêa, MAA ReviewsFrom reviews for the First Edition:"This book provides a thorough presentation of the mathematics behind the derivatives pricing formula. It is written for mathematicians as well as finance students or professionals ... very lucid ... an excellent choice for graduate students in mathematical finance as well as practitioners with the required background." - Ita Cirovic Donev, MAA Reviews"A neatly and lively written text that may be warmly recommended to undergraduates and graduate students in mathematics and finance." - EMS Newsletter"The author has done a very good job presenting the abstract probability theory needed to understand the derivation of the Black-Scholes formula, as well as the intuitive ideas, often simple, behind it. By starting with simple models in which the financial principles used can be clearly seen and then building smoothly toward the more complex model used in the Black-Scholes formula, the author allows the reader to appreciate the financial principles used even in the more complex settings. Furthermore, the exercises included after each chapter help the reader understand the material presented. ... Finally, the many historical footnotes often add insight and help bring the mathematics to life." - Errol Caby, AT&T Laboratories"For budding financial engineers, this is an outstanding introduction to the mathematics that underlies derivatives pricing theory. ... It also offers plenty of exercises that will help you build mastery... Dineen won an award (Best Books of 2006) for providing a treatment of finanical engineering math that is simultaneously accessible and rigorous." - Glyn Holton, founder Contingency Analysis and Riskbook.com"... an excellent choice ... This book provides a thorough presentation of the mathematics behind the derivatives pricing formula. It is written for mathematicians as well as finance students or professionals." - MAA Reviews"... one of the author's aims is to entice the students by the beauty of mathematics, which he illustrates very well. If a course instructor teaching from the book succeeds in this, my guess is that the course will be a great success... It outshines most of its competitors ... variety of nice exercises and solutions ..." - Mathematical Reviews

• Table of Contents:Money and markets Fair games Set theoryMeasurable functions Probability spaces Expected values Continuity and integrabilityConditional expectation Lebesgue measureMartingales The Black-Scholes formula Stochastic integrationSolutions BibliographyIndex