{"product_id":"stochastic-finance-1","title":"Stochastic Finance","description":"\u003cp\u003eThis book is an introduction to financial mathematics.\u003c\/p\u003e \u003cp\u003eThe first part of the book studies a simple one-period model which serves as a building block for later developments. Topics include the characterization of arbitrage-free markets, preferences on asset profiles, an introduction to equilibrium analysis, and monetary measures of risk.\u003c\/p\u003e \u003cp\u003eIn the second part, the idea of dynamic hedging of contingent claims is developed in a multiperiod framework. Such models are typically incomplete: They involve intrinsic risks which cannot be hedged away completely. Topics include martingale measures, pricing formulas for derivatives, American options, superhedging, and hedging strategies with minimal shortfall risk.\u003c\/p\u003e \u003cp\u003eIn addition to many corrections and improvements, this second edition contains several new sections, including a systematic discussion of law-invariant risk measures and of the connections between American options, superhedging, and dynamic risk measures. \u003c\/p\u003e","brand":"De Gruyter","offers":[{"title":"Default Title","offer_id":56161963671896,"sku":"9783110183467","price":141.99,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0278\/1295\/4195\/files\/9783110183467_b0142c39-e8c8-4313-a4fd-268b750807d0.jpg?v=1781014531","url":"https:\/\/agendabookshop.com\/products\/stochastic-finance-1","provider":"Agenda Bookshop","version":"1.0","type":"link"}