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Informationen zum Autor PAOLO BRANDIMARTE is Full Professor at the Department of Mathematical Sciences of Politecnico di Torino in Italy, where he teaches Business Analytics and Financial Engineering. He is the author of several publications, including more than ten books on the application of optimization and simulation to diverse areas such as production and supply chain management, telecommunications, and finance. Klappentext COVERS THE FUNDAMENTAL TOPICS IN MATHEMATICS, STATISTICS, AND FINANCIAL MANAGEMENT THAT ARE REQUIRED FOR A THOROUGH STUDY OF FINANCIAL MARKETSThis comprehensive yet accessible book introduces students to financial markets and delves into more advanced material at a steady pace while providing motivating examples, poignant remarks, counterexamples, ideological clashes, and intuitive traps throughout. Tempered by real-life cases and actual market structures, An Introduction to Financial Markets: A Quantitative Approach accentuates theory through quantitative modeling whenever and wherever necessary. It focuses on the lessons learned from timely subject matter such as the impact of the recent subprime mortgage storm, the collapse of LTCM, and the harsh criticism on risk management and innovative finance. The book also provides the necessary foundations in stochastic calculus and optimization, alongside financial modeling concepts that are illustrated with relevant and hands-on examples.An Introduction to Financial Markets: A Quantitative Approach starts with a complete overview of the subject matter. It then moves on to sections covering fixed income assets, equity portfolios, derivatives, and advanced optimization models. This book's balanced and broad view of the state-of-the-art in financial decision-making helps provide readers with all the background and modeling tools needed to make "honest money" and, in the process, to become a sound professional.* Stresses that gut feelings are not always sufficient and that "critical thinking" and real world applications are appropriate when dealing with complex social systems involving multiple players with conflicting incentives* Features a related website that contains a solution manual for end-of-chapter problems* Written in a modular style for tailored classroom use* Bridges a gap for business and engineering students who are familiar with the problems involved, but are less familiar with the methodologies needed to make smart decisionsAn Introduction to Financial Markets: A Quantitative Approach offers a balance between the need to illustrate mathematics in action and the need to understand the real life context. It is an ideal text for a first course in financial markets or investments for business, economic, statistics, engineering, decision science, and management science students. Zusammenfassung "This book arises from slides and lecture notes that I have used ... in my courses "Financial markets and instruments" and "Financial engineering"..."--Page xv. Inhaltsverzeichnis Preface xv About the Companion Website xix Part I Overview 1 Financial Markets: Functions, Institutions, and Traded Assets 1 1.1 What is the purpose of finance? 2 1.2 Traded assets 12 1.2.1 The balance sheet 15 1.2.2 Assets vs. securities 20 1.2.3 Equity 22 1.2.4 Fixed income 24 1.2.5 FOREX markets 27 1.2.6 Derivatives 29 1.3 Market participants and their roles 46 1.3.1 Commercial vs. investment banks 48 1.3.2 Investment funds and insurance companies 49 1.3.3 Dealers and brokers 51 1.3.4 Hedgers, speculators, and arbitrageurs 51 1.4 Market structure and trading strategies 53 1.4.1 Primary and secondary markets 53 1.4.2 Over-the-counter vs. exchange-traded derivatives 53 1.4.3 Auction mechanisms and the limit order book 53 1.4.4 Buying on margin and leverage 55
