基本説明
Translated from the French by A. Thomas.
Full Description
Financial markets, ruling both industrial and commercial development, dominate today's economies. The mathematics that supports the financial markets is what the economy depends on as a whole; mathematical formulae underlay the functions of major banks. This translation of the prize-winning French original shows how the application of mathematics to finance has turned the latter into an exact science as well as formidable and efficient tool. The author, Nicolas Bouleau, is a professor at l'Ecole des Ponts-et-Chaussees and a director of one of the first French research groups to work with banks and financial derivatives.
Contents
I. Martingales.- 1. Luck in the Casino.- 2. The Stock Market and Probability.- 3. Mathematical Development outside the Finance Sector.- II. Option Hedging: an Epistemological Rupture.- 4. The Unexpected Connection.- 5. A Different Approach.- 6. Hedging Risks Thanks to the Market.- III. Science and Speculation.- 7. A Complex Dynamic.- 8. Illusions of Chance.- 9. Three Types of Speculation.- 10. Practical and Moral Values.- IV. The Stakes and the Payoffs.- 11. Markets and Economy.- 12. The Special Role of Finance in the Production of Knowledge.- 13. Power and Innocence in Finance.- 14. Long Term Risks.- Conclusion.
