So many folks are hampered by bad math education. I however have been blessed to have received both ample encouragement and excellent instruction in math throughout my schooling. Beginning in the third grade when I won Shenandoah Elementary’s subtraction competition and my uncle Jeff gave me the “Master of Less” pin that I still have through high school math with John Lemahieu where math was fun and never intimidating and straight through grad school with professors like Dr. Frank Fabozzi who never failed to link math to application to reasoning.
This free book on the mathematics of finance was inspired by the many MBA students who would like to take finance classes but are worried about their math background. My approach has been to link math concepts to their applications within economics and finance while hoping to build up rather than tear down. The topical outline of this book somewhat follows that of Focardi & Fabozzi’s Mathematics of Financial Modeling and Investment Management and Kennedy’s A Guide to Econometrics where relevant to novice finance professionals and aspiring MBA Finance students.
I would be completely remiss if I did not thoroughly thank my entire family for their encouragement and endurance as I have variously and indefatigably learned, discussed and taught mathematics throughout my life. Please alert me to any mistakes or omissions.
Math of Finance chapters:
- Introduction
- Essentials of Calculus
- Matrix Algebra
- Probability
- Optimization
- Stochastic Integrals
- Differential Equations
- Stochastic Differential Equations
- Financial Econometrics
- Data Science in Finance
