- Joined
- 11/26/08

- Messages
- 62

- Points
- 18

*An Elementary Introduction to Mathematical Finance: Options and Other Topics*. And to say the least, it sucks. The questions have no solutions to see if you're right and they pertain very little to what you read in the chapter - its as if you read in depth into a specific topic and have to answer questions that are somewhere in the same ballpark (but far away, think upper deck behind home plate and left field). Further, there's no way to tell if you're even in thinking in the right direction, as there are no solutions.

Oh, and each chapter is nary over 8 pages. The professor of my course, though a great guy, teaches straight out of the book, going over Sample Exercises found in the book, copying them down step for step for step. And it's not as though I'm just not getting it - everyone in the class is struggling and I took the initiative (with their support) in finding an alternative.

So I'm looking for a book that will supplement what I'm learning. The book is here: Amazon.com: An Elementary Introduction to Mathematical Finance: Options and other Topics (9780521814294): Sheldon M. Ross: Books

and it covers these topics:

1. Probability;

2. Normal random variables;

3. Geometric Brownian motion;

4. Interest rates and present value analysis;

5. Pricing contracts via Arbitrage;

6. The Arbitrage Theorem;

7. The Black-Scholes formula;

8. Valuing by expected utility;

9. Exotic options;

10. Beyond geometric Brownian motion models;

11. Autoregressive models and mean reversion;

12. Optimization methods in finance.

To give an example of how terrible this book is, the chapter on Brownian Motion goes over the equation and what to plug in where, the questions, as a whole, deal with probabilities of brownian motion, something that the chapter itself does not cover anywhere.