Introduction to stochastic calculus applied to finance (2nd ed)

"Introduction to Stochastic Calculus Applied to Finance, Second Edition" is a new edition of a very popular text in mathematical finance that has been widely embraced internationally.

The book has been fully updated, with many sections greatly enhanced, and new material incorporated on stochastic volatility models, options pricing, and credit risk modeling.

The book maintains its concise style, which makes it an ideal introductory text for students of mathematical finance, or a quick introduction to researchers and finance practitioners.

It covers all the stochastic calculus theory required, as well as many key finance topics, including a new chapter dedicated to credit risk modeling.