Financial Mathematics

Kevin J. Hastings is Professor of Mathematics; Rothwell C. Stephens Distinguished Service Chair at Knox College. He holds a Ph.D. from Northwestern University. His interests include applications to real-world problems affected by random inputs or disturbances. He is the author or three other books for CRC Press:Introduction to Financial Mathematics, CRC Press, 2016. CHOICE Highly Recommended selection and 2017 Top Books for Colleges. Introduction to Probability with Mathematica, 2nd ed., Chapman & Hall/CRC Press, 2009.Introduction to the Mathematics of Operations Research with Mathematica, 2nd edition, Taylor & Francis/Marcel Dekker, 2006.Introduction to Probability with Mathematica. CRC Press/Chapman & Hall, 2000. Also available as an e-book.

I like Kevin Hastings' "Introduction to Financial Mathematics" (Volume 1) very much.The book is very readable; it builds slowly with many examples andexercises (and answers to some of the exercises are in the back).The writing style is good; the exercises are easy to understand. The material is comprehensive and covers the topics well. It is surprising that the book maintains the same clear level of exposition from the simple early chapters to the more complicated later chapters.The table of contents covers all the material that should appear in afinancial mathematics course.Dan ZwillingerIn addition to its clear explanations, this volume emphasizes real problem solving with examples and exercises that challenge students to apply knowledge of basic concepts to new situations. Another unique aspect is the application of discrete probability to finance; the author provides an overview and illustrates problems in which the rates of interest are random variables, instead of traditional problems that consider only known constants. Topics covered include the mathematics of interest, valuation of bonds, discrete probability for finance, portfolio selection, and derivatives. This book is highly recommended for undergraduates and those preparing for actuarial credentialing and exams.S. J. Chapman Jr., Purdue University-NorthWest

• Chapter 1. Review of Preliminaries. Chapter 2. More on Portfolio Optimization; Capital Market Theory. Chapter 3. Derivatives Valuation in Multiple Periods. Chapter 4. Continuous Probability Models. Chapter 5. Derivative Valuation in Continuous Time. Appendices.