Includes bibliographical references and index.

Financial derivatives
a brief introduction
A primer on the arbitrage theorem
Review of deterministic calculus
Pricing derivatives : models and notation
Tools in probability theory
Martingales and Martingale representations
Differentiation in stochastic environments
The Wiener process, Lévy processes, and rare events in financial markets
Integration in stochastic environments
Itô's lemma
The dynamics of derivative prices
Pricing derivative products : partial differential equations
PDEs and PIDEs
an application
Pricing derivative products : equivalent Martingale measures
Equivalent Martingale measures
New results and tools for interest-sensitive securities
Arbitrage theorem in a new setting
Modeling term structure and related concepts
Classical and HJM approach to fixed income
Classical PDE analysis for interest rate derivatives
Relating conditional expectations to PDEs
Pricing derivatives via Fourier transform technique
Credit spread and credit derivatives
Stopping times and American-type securities
Overview of calibration and estimation techniques

An Introduction to the Mathematics of Financial Derivatives is a popular, intuitive text that eases the transition between basic summaries of financial engineering to more advanced treatments using stochastic calculus. Requiring only a basic knowledge of calculus and probability, it takes readers on a tour of advanced financial engineering. This classic title has been revised by Ali Hirsa, who accentuates its well-known strengths while introducing new subjects, updating others, and bringing new continuity to the whole. Popular with readers because it emphasizes intuition and common sense, An Introduction to the Mathematics of Financial Derivatives remains the only "introductory" text that can appeal to people outside the mathematics and physics communities as it explains the how's and whys of practical finance problems. Facilitates readers' understanding of underlying mathematical and theoretical models by presenting a mixture of theory and applications with hands-on learning. Presented intuitively, breaking up complex mathematics concepts into easily understood notions. Encourages use of discrete chapters as complementary readings on different topics, offering flexibility in learning and teaching