What are Some Accessible Books on Financial Mathematics for Undergraduates?

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In summary, the conversation discusses recommendations for books on financial mathematics. One person is looking for a book that covers the basics of financial math and is accessible to undergraduates, without requiring a PhD to understand. The other person suggests learning about nonlinear dynamic systems for modeling economic systems and mentions the Black-scholes equation as an example. They also mention that calculus and differential equations are useful for understanding financial derivatives. The conversation also touches on the definition of financial math, which includes topics such as time series, simulations, and stochastic differential equations. One specific book recommendation is "Theory of Interest and Life Contingencies with Pension Application" by Parmenter, published by Actex Publications.
  • #1
gravenewworld
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Does anyone know of any good books on financial math? I am interested in something that covers the basics of financial math and is accessible to undergraduates. I don't want anything that takes a phd to understand.
 
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  • #2
It is not clear what you mean. If you are referring to accounting then there is not much math required, it is all orgainization.

If you are referring to modeling economic systems then you must learn about nonlinear dynamic systems (Chaos) .

What is financial math?
 
  • #3
I had something in mind like Black-scholes equation (which is very famous), financial derivatives, options, etc.
 
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  • #4
Calculus and Differential equations will do what you need for that.
 
  • #5
Integral said:
What is financial math?
financial mathematics usually refer to time series, simulations, stochastic differential equations, and etc.
 
  • #6
"theory of interest and life contingencies with pension application"

by Parmenter,Actex Pbublication...is very good book about f.math
 

FAQ: What are Some Accessible Books on Financial Mathematics for Undergraduates?

What is financial mathematics?

Financial mathematics is a branch of applied mathematics that deals with the analysis and modeling of financial markets and instruments. It involves using mathematical tools and techniques to study and understand the behavior of financial systems and make informed decisions regarding investments, risk management, and financial planning.

What are some common applications of financial mathematics?

Financial mathematics has a wide range of applications, including stock and bond pricing, portfolio optimization, risk management, derivative pricing, and option pricing. It is also used in other areas such as insurance, banking, and real estate to assess and manage financial risks.

What skills are required to excel in financial mathematics?

To excel in financial mathematics, one needs a strong foundation in calculus, linear algebra, and probability theory. It is also essential to have a thorough understanding of financial markets and instruments, as well as programming skills to work with financial data and models.

What are some common career paths for those with a background in financial mathematics?

Individuals with a background in financial mathematics can pursue a variety of careers, including financial analyst, risk analyst, quantitative analyst, investment banker, and actuary. They can also work in government agencies, consulting firms, and research institutions.

How does financial mathematics contribute to the financial industry?

Financial mathematics plays a crucial role in the financial industry by providing tools and techniques to analyze and manage financial risks, make informed investment decisions, and develop complex financial models. It also helps in developing new financial products and improving existing ones to meet the changing needs of the market.

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