Sheldon M. Ross

A sufficient book to pair with a university course. I found it too often fell back on "present a fact/theorem/&c. and prove it" without explanation, justification or illumination. Maybe too focused on being rigorous and correct for the math major, and just hoping the science major will absorb the information with hundreds of different dry examples.

This new, third edition further bolsters Ross’ text as an excellent introduction to mathematical finance. Plentiful with preliminary material, the book can work for self-study, given that the reader has a solid background in calculus and statistics fundamentals. It would also be helpful to understand the fundamentals of LP models and their duals, as this is an expectation made on the reader for grasping the key proof of the Arbitrage Theorem. Of course, the text can work well as an show more introductory course for undergraduates. The usage as a textbook on the basics of option pricing better fits the structure of the text which includes exercises at the end of each chapter without any solutions. Also, the examples, while detailed, are less numerous than the proofs, lemmas, and propositions the reader will need in order to comprehend in order to progress. show less

Undergraduate text with lots and lots of really good examples.

This is a great text, Each chapter contains dozens of problems. There's even a special section for "theoretical problems". THere are some hints at the back of the book which I definitely needed. Probability is really an unintuitive subject so doing loads of tough problems is a good way to learn.