Principles of Financial Engineering, 2nd Edition

Preface

This book is an introduction. It deals with a broad array of topics that fit together through a certain logic that we generally call Financial Engineering. The book is intended for beginning graduate students and practitioners in financial markets. The approach uses a combination of simple graphs, elementary mathematics and real world examples. The discussion concerning details of instruments, markets and financial market practices is somewhat limited. The pricing issue is treated in an informal way, using simple examples. In contrast, the engineering dimension of the topics under consideration is emphasized.

I learned a great deal from technically oriented market practitioners who, over the years, have taken my courses. The deep knowledge ...