• Produktbild: Applied Diffusion Processes from Engineering to Finance
  • Produktbild: Applied Diffusion Processes from Engineering to Finance

Applied Diffusion Processes from Engineering to Finance

Aus der Reihe ISTE

226,99 €

inkl. gesetzl. MwSt., Versandkostenfrei


Beschreibung

Produktdetails

Einband

Gebundene Ausgabe

Erscheinungsdatum

14.03.2013

Verlag

John Wiley & Sons

Seitenzahl

410

Maße (L/B/H)

24,2/16,4/3 cm

Gewicht

747 g

Auflage

1. Auflage

Sprache

Englisch

ISBN

978-1-84821-249-7

Beschreibung

Produktdetails

Einband

Gebundene Ausgabe

Erscheinungsdatum

14.03.2013

Verlag

John Wiley & Sons

Seitenzahl

410

Maße (L/B/H)

24,2/16,4/3 cm

Gewicht

747 g

Auflage

1. Auflage

Sprache

Englisch

ISBN

978-1-84821-249-7

Herstelleradresse

Libri GmbH
Europaallee 1
36244 Bad Hersfeld
DE

Email: GPSR Kontakt

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  • Produktbild: Applied Diffusion Processes from Engineering to Finance
  • Produktbild: Applied Diffusion Processes from Engineering to Finance
  • Introduction xiii
     
    Chapter 1 Diffusion Phenomena and Models 1
     
    1.1 General presentation of diffusion process 1
     
    1.2 General balance equations 6
     
    1.3 Heat conduction equation 10
     
    1.4 Initial and boundary conditions 12
     
    Chapter 2 Probabilistic Models of Diffusion Processes 17
     
    2.1 Stochastic differentiation 17
     
    2.2 Itô's formula 19
     
    2.3 Stochastic differential equations (SDE) 24
     
    2.4 Itô and diffusion processes 28
     
    2.5 Some particular cases of diffusion processes 32
     
    2.6 Multidimensional diffusion processes 36
     
    2.7 The Stroock-Varadhan martingale characterization of diffusions (Karlin and Taylor) 41
     
    2.8 The Feynman-Kac formula (Platen and Heath) 42
     
    Chapter 3 Solving Partial Differential Equations of Second Order 47
     
    3.1 Basic definitions on PDE of second order 47
     
    3.2 Solving the heat equation 51
     
    3.3 Solution by the method of Laplace transform 65
     
    3.4 Green's functions 75
     
    Chapter 4 Problems in Finance 85
     
    4.1 Basic stochastic models for stock prices 85
     
    4.2 The bond investments 90
     
    4.3 Dynamic deterministic continuous time model for instantaneous interest rate 93
     
    4.4 Stochastic continuous time dynamic model for instantaneous interest rate 98
     
    4.5 Multidimensional Black and Scholes model 110
     
    Chapter 5 Basic PDE in Finance 111
     
    5.1 Introduction to option theory 111
     
    5.2 Pricing the plain vanilla call with the Black-Scholes-Samuelson model 115
     
    5.3 Pricing no plain vanilla calls with the Black-Scholes-Samuelson model 120
     
    5.4 Zero-coupon pricing under the assumption of no arbitrage 127
     
    Chapter 6 Exotic and American Options Pricing Theory 145
     
    6.1 Introduction 145
     
    6.2 The Garman-Kohlhagen formula 146
     
    6.3 Binary or digital options 149
     
    6.4 "Asset or nothing" options 150
     
    6.5 Numerical examples 152
     
    6.6 Path-dependent options 153
     
    6.7 Multi-asset options 157
     
    6.8 American options 165
     
    Chapter 7 Hitting Times for Diffusion Processes and Stochastic Models in Insurance 177
     
    7.1 Hitting or first passage times for some diffusion processes 177
     
    7.2 Merton's model for default risk 193
     
    7.3 Risk diffusion models for insurance 201
     
    Chapter 8 Numerical Methods 219
     
    8.1 Introduction 219
     
    8.2 Discretization and numerical differentiation 220
     
    8.3 Finite difference methods 222
     
    9.1 Nonlinear model in heat conduction 232
     
    Chapter 9 Advanced Topics in Engineering: Nonlinear Models 231
     
    9.2 Integral method applied to diffusive problems 233
     
    9.3 Integral method applied to nonlinear problems 239
     
    9.4 Use of transformations in nonlinear problems 243
     
    Chapter 10 Lévy Processes 255
     
    10.1 Motivation 255
     
    10.2 Notion of characteristic functions 257
     
    10.3 Lévy processes 257
     
    10.4 Lévy-Khintchine formula 259
     
    10.5 Examples of Lévy processes 261
     
    10.6 Variance gamma (VG) process 264
     
    10.7 The Brownian-Poisson model with jumps 266
     
    10.8 Risk neutral measures for Lévy models in finance 275
     
    10.9 Conclusion 276
     
    Chapter 11 Advanced Topics in Insurance: Copula Models and VaR Techniques 277
     
    11.1 Introduction 277
     
    11.2 Sklar theorem (1959) 279
     
    11.3 Particular cases and Fréchet bounds 280
     
    11.4 Dependence 288
     
    11.5 Applications in finance: pricing of the bivariate digital put option 293
     
    11.6 VaR application in insurance 296
     
    Chapter