Medhat ullah’s Reviews > Stochastic Calculus for Finance I: The Binomial Asset Pricing Model > Status Update
Medhat ullah
is on page 6 of 202
The text gives precise statements of results, plausibility arguments, and even some proofs, but more importantly, intuitive explanations developed and refined through classroom experience with this material are provided. Exercises conclude every chapter. Some of these extend the theory and others are drawn from practical problems in quantitative finance.
— Jan 23, 2025 08:56PM
Like flag
Medhat ’s Previous Updates
Medhat ullah
is on page 10 of 202
Harry Markowitz's 1952 Ph.D. thesis Portfolio Selection laid the groundwork for the mathematical theory of finance. Markowitz developed a notion of mean return and covariances for common stocks that allowed him to quantify the concept of "diversification" in a market.
— Jan 23, 2025 09:01PM
Medhat ullah
is on page 10 of 202
By awarding Harry Markowitz, William Sharpe, and Merton Miller the 1990
Nobel Prize in Economics, the Nobel Prize Committee brought to worldwide attention the fact that the previous forty years had seen the emergence of a new scientific discipline, the "theory of finance."
— Jan 23, 2025 09:01PM
Nobel Prize in Economics, the Nobel Prize Committee brought to worldwide attention the fact that the previous forty years had seen the emergence of a new scientific discipline, the "theory of finance."
Medhat ullah
is on page 6 of 202
1 The Binomial No-Arbitrage Pricing Model:
u = up factor: The multiplier by which the asset price increases.
d = down factor: The multiplier by which the asset price decreases.
p = probability of the price going up (upward movement).
1 - p = probability of the price going down (downward movement).
Risk-Neutral Valuation
— Jan 23, 2025 09:00PM
u = up factor: The multiplier by which the asset price increases.
d = down factor: The multiplier by which the asset price decreases.
p = probability of the price going up (upward movement).
1 - p = probability of the price going down (downward movement).
Risk-Neutral Valuation
Medhat ullah
is on page 6 of 202
The first three chapters of Volume I have been used in a half-semester
course in the MSCF program. The full Volume I has been used in a fullsemester course in the Carnegie Mellon Bachelor's program in Computational Finance. Volume II was developed to support three half-semester courses in the MSCF program
— Jan 23, 2025 08:56PM
course in the MSCF program. The full Volume I has been used in a fullsemester course in the Carnegie Mellon Bachelor's program in Computational Finance. Volume II was developed to support three half-semester courses in the MSCF program
Medhat ullah
is on page 6 of 202
Origin of This Text:
This text has evolved from mathematics courses in the Master of Science in Computational Finance (MSCF) program at Carnegie Mellon University. The content of this book has been used successfully with students whose mathematics background consists of calculus and calculus-based probability.
— Jan 23, 2025 08:55PM
This text has evolved from mathematics courses in the Master of Science in Computational Finance (MSCF) program at Carnegie Mellon University. The content of this book has been used successfully with students whose mathematics background consists of calculus and calculus-based probability.
Medhat ullah
is on page 2 of 202
analysis of financial markets, risk managemant & financial mathematics, foreign exchange, & the tough, abstract landscape of mathematical finance,
portfolio theory, term structure, equity derivatives, financial economics
— Jan 23, 2025 08:54PM
portfolio theory, term structure, equity derivatives, financial economics
