#### drdoombledore

##### New Member

I am looking for a book on stochastic calculus for finance. We are using the book "Introduction to stochastic calculus Applied to finance" by Damien Lamberton and Bernard Lapeyre in our course. My problem is, the book is pretty compact and I have a hard time understanding some concepts sometimes.

For example, on viable financial markets

"Denote by * the set of all non-negative random variables X such that P(X >0)>0. Clearly, * is a convex cone in the vector space of real-valued random variables. The market is viable if and only if for any admissible strategy ..."

I also studied Shreve's book too (discrete) but couldn't find this subject, as well as some others.

My question is, if someone knows both books, can you suggest a book that covers the subjects in first one, while explaining as exhaustive as Shreve's books ?

Thank you very much.