Stochastic Financial Models

This comprehensive introduction to mathematical finance is designed for students with no prior knowledge of stochastic calculus or measure-theoretic probability. It begins with foundational concepts like utility and the mean-variance approach to portfolio choice, then delves into derivative pricing with topics including the binomial model, discrete-time models, Brownian motion, and the Black-Scholes model. The text is enriched with exercises and solutions, making it a practical resource for learning key financial theories and models.