Deep Dive into Financial Models

Since 2007, the repeated financial crises around the world have brought to the headlines financial practices and models considered to fuel the economic instabilities. Deep Dive into Financial Models: Modeling Risk and Uncertainty comes handy in demystifying the underlying quantitative finance concepts. With a limited use of mathematical formalism, the book explains thoroughly the models, their hypotheses, principles and other building blocks. A particular care is given to model limitations and their misuse for investment strategies, asset pricing, or risk management. Its reader-friendly nature provides readers with a head start in quantitative finance.

Request Inspection Copy

Contents:Interest Rate Curve;Principal Component Analysis;Risk Free Rate;Credit Spread;Merton Model;Credit Correlation;Markowitz Theory;Capital Asset Pricing Model;Cointegration;No Arbitrage Theory;Black Scholes Model;Implied Volatility;Volatility Surface;Volatility Models;Dupire Model;Heston Model;Monte Carlo Methods;Finite Differences Methods;Value at Risk;Fat Tail Models;Levy Processes;
Readership: Undergraduate and graduate students who are taking up Quantitative Finance courses and those who possess college mathematical background.
Quantitative Finance, Mathematical Finance, Applied Mathematics to Financial Markets, Arbitrage, Quantitative Analysis, Financial Engineering, Valuation Model, Derivative Pricing, Financial Model ReviewMore emphasis on the founding principles and the consequences of financial models which provides a thorough understanding on the subjectNumerous reader-friendly and original graphs which help gain an intuitive view on the physical properties of financial conceptsA critical look on the models as assessed by professional risk managers