A comprehensive text and reference, first published in 2002, on the theory of financial engineering with numerous algorithms for pricing, risk management, and portfolio management.

... MATHEMATICS , ALGORITHMS Yuh - Dauh Lyuu Fishont 181 7.7 76.14 15 50 75 CAMBRIDGE CAMBRIDGE more information - www.cambridge.org/052178171x This page intentionally left blank FINANCIAL ENGINEERING AND COMPUTATION During. Cover.

Please note the CD supplied with this book is platform-dependent and PC users will not be able to use the files without manual intervention in order to remove extraneous characters. Cambridge University Press apologises for this error.

The Black-Scholes pricing formula is first derived in the simplest financial context. The second half of the book is then devoted to increasing the financial sophistication of the models and instruments.

A textbook providing an introduction to financial option valuation for undergraduates. Solutions available from solutions@cambridge.org.