The pricing of derivative instruments has always been a highly complex and time-consuming activity. Advances in technology, however, have enabled much quicker and more accurate pricing through mathematical rather than analytical models. In this book, the author bridges the divide between finance and mathematics by applying this proven mathematical technique to the financial markets. Utilising practical examples, the author systematically describes the processes involved in a manner accessible to those without a deep understanding of mathematics. * Explains little understood techniques that will assist in the accurate more speedy pricing of options * Centres on the practical application of these useful techniques * Offers a detailed and comprehensive account of the methods involved and is the first to explore the application of these particular techniques to the financial marketsHere, we follow the definition of Frank H. Knight who distinguished between decisions under uncertainty and decisions under risk (Knight, 1921). ... Differential equations have been studied for some centuries by mathematicians, physicists and engineers, so that a ... Techniques for finding approximate solutions for differential equations arising in finance is the topic of this book. ... In engineering and natural sciences this would be considered a big drawback, since it makes the problemanbsp;...
|Title||:||Financial Engineering with Finite Elements|
|Publisher||:||John Wiley & Sons - 2005-06-24|