Financial and insurance calculations become more and more frequent and helpful for many users not only in their profession life but sometimes even in their personal life. Therefore a survey of formulas of ?nancial and insurance mathematics that can be applied to such calculations seems to be a suitable aid. In some cases one should use instead of the term formula more suitable terms of the type method, p- cedure or algorithm since the corresponding calculations cannot be simply summed up to a single expression, and a verbal description without introducing complicated symbols is more appropriate. The survey has the following ambitions: • The formulas should be applicable in practice: it has motivated their choice for this survey ?rst and foremost. On the other hand it is obvious that by time one puts to use in practice seemingly very abstract formulas of higher mathematics, e.g. when pricing ?nancial derivatives, evaluating ?nancial risks, applying accou- ing principles based on fair values, choosing alternative risk transfers ARL in insurance, and the like. • The formulas should be error-free (though such a goal is not achievable in full) since in the ?nancial and insurance framework one publishes sometimes in a h- tic way various untried formulas and methods that may be incorrect. Of course, the formulas are introduced here without proofs because their derivation is not the task of this survey.

This book is an elementary introduction to the basic concepts of financial mathematics with a central focus on discrete models and an aim to demonstrate simple, but widely used, financial derivatives for managing market risks. Only a basic knowledge of probability, real analysis, ordinary differential equations, linear algebra and some common sense are required to understand the concepts considered in this book.Financial mathematics is an application of advanced mathematical and statistical methods to financial management and markets, with a main objective of quantifying and hedging risks. Since the book aims to present the basics of financial mathematics to the reader, only essential elements of probability and stochastic analysis are given to explain ideas concerning derivative pricing and hedging. To keep the reader intrigued and motivated, the book has a ‘sandwich’ structure: probability and stochastics are given in situ where mathematics can be readily illustrated by application to finance.The first part of the book introduces one of the main principles in finance — ‘no arbitrage pricing’. It also introduces main financial instruments such as forward and futures contracts, bonds and swaps, and options. The second part deals with pricing and hedging of European- and American-type options in the discrete-time setting. In addition, the concept of complete and incomplete markets is discussed. Elementary probability is briefly revised and discrete-time discrete-space stochastic processes used in financial modelling are considered. The third part introduces the Wiener process, Ito integrals and stochastic differential equations, but its main focus is the famous Black-Scholes formula for pricing European options. Some guidance for further study within this exciting and rapidly changing field is given in the concluding chapter. There are approximately 100 exercises interspersed throughout the book, and solutions for most problems are provided in the appendices.

If there is a formula to solve a given problem in mathematics, you will find it in Alan Jeffrey's Handbook of Mathematical Formulas and Integrals. Thanks to its unique thumb-tab indexing feature, answers are easy to find based upon the type of problem they solve. The Handbook covers important formulas, functions, relations, and methods from algebra, trigonometric and exponential functions, combinatorics, probability, matrix theory, calculus and vector calculus, both ordinary and partial differential equations, Fourier series, orthogonal polynomials, and Laplace transforms. Based on Gradshteyn and Ryzhik's Table of Integrals, Series, and Products, Fifth Edition (edited by Jeffrey), but far more accessible and written with particular attention to the needs of students and practicing scientists and engineers, this book is an essential resource. Affordable and authoritative, it is the first place to look for help and a rewarding place to browse.Special thumb-tab index throughout the book for ease of useAnswers are keyed to the type of problem they solveFormulas are provided for problems across the entire spectrum of MathematicsAll equations are sent from a computer-checked source codeCompanion to Gradshteyn: Table of Integrals, Series, and Products, Fifth EditionThe following features make the Handbook a Better Value than its Competition:Less expensiveMore comprehensiveEquations are computer-validated with Scientific WorkPlace(tm) and Mathematica(r)Superior quality from one of the most respected names in scientific and technical publishingOffers unique thumb-tab indexing throughout the book which makes finding answers quick and easy

Fully updated and compliant with Excel 2013, this clearly explains the basic calculations for mathematical finance, backed up with simple templates for further use and development, and a workbook with exercises and solutions at the end of each chapter. The examples used are relevant to both managers and students in the UK and overseas. The full text downloaded to your computer With eBooks you can: search for key concepts, words and phrases make highlights and notes as you study share your notes with friends eBooks are downloaded to your computer and accessible either offline through the Bookshelf (available as a free download), available online and also via the iPad and Android apps. Upon purchase, you'll gain instant access to this eBook. Time limit The eBooks products do not have an expiry date. You will continue to access your digital ebook products whilst you have your Bookshelf installed.