Applied Conic Finance
About this book
This is a comprehensive introduction to the brand new theory of conic finance, also referred to as the two-price theory, which determines bid and ask prices in a consistent and fundamentally motivated manner. Whilst theories of one price classically eliminate all risk, the concept of acceptable risks is critical to the foundations of the two-price theory which sees risk elimination as typically unattainable in a modern financial economy. Practical examples and case studies provide the reader with a comprehensive introduction to the fundamentals of the theory, a variety of advanced quantitative models, and numerous real-world applications, including portfolio theory, option positioning, hedging, and trading contexts. This book offers a quantitative and practical approach for readers familiar with the basics of mathematical finance to allow them to boldly go where no quant has gone before.
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Information
Table of contents
- Cover
- Half-title page
- Title page
- Copyright page
- Dedication
- Contents
- Preface
- Acknowledgements
- 1 Financial Mathematics Principles
- 2 Stochastic Processes and Financial Models
- 3 Numerical Techniques
- 4 Conic Finance
- 5 Conic Pricing
- 6 Applications of Conic Finance
- 7 Conic Portfolio Theory
- 8 Conic Hedging
- 9 Hedging Insurance Contracts
- 10 Option Positioning
- 11 Conic Trading
- References
- Index
