HSE Publishing House

It is presently impossible to conceive the development of finance economy and insurance without financial mathematics, which provides valid foundation for quantitative calculations in said areas. In concentrated form the book presents the most modern methodology of financial calculations and its substantiation in models suitable for practical studies. Apart from the sections dealing with hedging and investing in full markets (Black — Scholes, Cox — Ross — Rubinstein models) that have now become traditional, the book also deals with issues of incomplete markets, limited markets, “imperfect” types of hedging, “convergence” of calculations in finances and insurance, which have been poorly if ever reflected in scientific publications. The presented material demands knowledge of probability theory basics, random processes and mathematical statistics. Addressed to experts in the field of financial and actuarial mathematics, financial and insurance business practitioners, students and postgraduates of corresponding profile.