Paul Wilmott Introduces Quantitative Finance doc

[...]... a shortened version of Paul Wilmott on Quantitative Finance, second edition It’s also more affordable than the ‘full’ version However, I hope that you’ll eventually upgrade, perhaps when you go on to more advanced, research-based studies, or take that job on The Street PWOQF is, I am told, a standard text within the banking industry, but in Paul Wilmott Introduces Quantitative Finance I have specifically... trading round C.6.2 At the end of the game 643 643 643 643 643 644 645 645 645 D Contents of CD accompanying Paul Wilmott Introduces Quantitative Finance, second edition 649 What you get if (when) you upgrade to PWOQF2 653 E Bibliography 659 Index 683 xxi Preface In this book I present classical quantitative finance The book is suitable for students on advanced undergraduate finance and derivatives courses,... quantitative finance, including several nonprobabilistic models There are more mathematical techniques for valuing exotic options and more markets are covered The numerical methods are described in more detail If you have any problems understanding anything in the book, find errors, or just want a chat, email me at paul@ wilmott. com I’ll do my very best to respond as quickly as possible Or visit www .wilmott. com... www .wilmott. com to discuss quantitative finance, and other subjects, with other people in this business I would like to thank the following people My partners in various projects: Paul and Jonathan Shaw and Gil Christie at 7city, unequaled in their dedication to training and their imagination for new ideas Also Riaz Ahmad, Seb Lleo and Siyi Zhou who have helped make the Certificate in Quantitative Finance so successful,... equities, commodities, currencies and indices • the time value of money • fixed and floating interest rates • futures and forwards • no-arbitrage, one of the main building blocks of finance theory 2 Paul Wilmott introduces quantitative finance 1.1 INTRODUCTION This first chapter is a very gentle introduction to the subject of finance, and is mainly just a collection of definitions and specifications concerning the... lies somewhere between products and markets Chapter 1 Figure 1.1 Details of Microsoft stock Source: Bloomberg L.P Figure 1.2 Details of Microsoft stock continued Source: Bloomberg L.P 3 4 Paul Wilmott introduces quantitative finance Figure 1.3 The Wall Street Journal Europe of 14th April 2005 complete predictability and perfect randomness, not least because there have been many cases of market manipulation... 31-Mar-99 17-Jun-07 Figure 1.4 A time series of the Dow Jones Industrial Average from January 1950 to March 2004 Figure 1.5 Glaxo–Wellcome share price (volume below) Source: Bloomberg L.P 5 6 Paul Wilmott introduces quantitative finance 110 108 106 104 102 100 98 96 94 Number of coin tosses 92 0 20 40 60 80 100 Figure 1.6 A simulation of an asset price path? More about coin tossing Notice how in the above... AUTHOR Paul Wilmott s professional career spans almost every aspect of mathematics and finance, in both academia and in the real world He has lectured at all levels, and founded a magazine, the leading website for the quant community, and a quant certificate program He has managed money as a partner in a very successful hedge fund He lives in London, is married, and has two sons Although he enjoys quantitative. .. chapters can be read without reference to the mathematics at all The structure, mathematical content, intuition, etc., are based on many years’ teaching at universities and on the Certificate in Quantitative Finance, and training bank personnel at all levels The accompanying CD contains spreadsheets and Visual Basic programs implementing many of the techniques described in the text The CD icon will... little bit uncomfortable Little prior knowledge is assumed, other than basic calculus, even stochastic calculus is explained here in a simple, accessible way By the end of the book you should know enough quantitative finance to understand most derivative contracts, to converse knowledgeably about the subject at dinner parties, to land a job on Wall Street, and to pass your exams The structure of the book . h1" alt="" Paul Wilmott Introduces Quantitative Finance Second Edition Paul Wilmott Introduces Quantitative Finance Second Edition www .wilmott. com Copyright. Data Wilmott, Paul. Paul Wilmott introduces quantitative finance.—2nd ed. p. cm. ISBN 978-0-470-31958-1 1. Finance Mathematical models. 2. Options (Finance) —Mathematical