A step-by-step explanation of the mathematical models used to price derivatives. For this second edition, Salih Neftci has expanded one chapter, added six new o

Basic option theory - Numerical methods - Further option theory - Interest rate derivative products.

A rigorous introduction to the mathematics of pricing, construction and hedging of derivative securities.

Publisher Description

This second edition, now featuring new material, focuses on the valuation principles that are common to most derivative securities. A wide range of financial de