Money and Mathematics

Part I: Income Taxes, Lottery, and Lion Hunting-Elementary Mathematics.- 1. "We Take over Your VAT!" How Big Is the Actual Discount?.- 2. Millions Every Week, but Not for Me. Six Numbers in the Lottery.- 3. Where Did My Money Go? Loss Compensation After a Price Drop.- 4. How Do You Catch a Lion? Finding a Zero by Halving the Interval.- 5. Upside Down and Up Again. How Many Zeros Does a Polynomial Have?.- 6. "According to Adam Ries, that Comes to . . . " About Fusti, Freight, and Cartage.- 7. How to Invest? The Cost-Average Effect.- 8. § 32a, the Politician and the Coaster. Calculating the Income Tax of a Person.- 9. This Makes the Taxpayer Shudder. What Does "Cold Progression" Actually Mean?.- Part II: Interest Rates, Prices, Yields-Classical Financial Mathematics.- 10. A Fair Deal? Or: There's Nothing Like Starting Young.- 11. Should I Pay the Bill Quickly? Cash Discount.- 12. The Children of the Interest Rate Are the Grand-Children of the Capital. Compound Interest.- 13. When Will Scrooge McDuck Be Satisfied? The Doubling Problem.- 14. How Real Is Nominal? The Actual Rate of Return on a Principal.- 15. "Have I Learned to Calculate Correctly?" Why Dr. X. from Gifhorn Was Wrong.- 16. "What, I Have to Pay that Long?" Full Repayment of a Loan.- 17. The Widow of the General and the Painter. A Loan à la Chekhov.- 18. Why Does Nominal not Equal Effective? The Effective Interest Rate of an Immediate Loan.- 19. Sandwich with a Car Inside. Financing with Hooks and Eyes.- 20. The Assiduous Clerk. Capital Certificates and Federal Bonds.- 21. 7500 Euros Monthly: A Lifetime. Or Better Yet, Two Millions Right Away?.- 22. Financing a Car with Zero Percent: A Bargain?- 23. Interest Payments Anytime: Isn't That Wonderful? Continuous Compounding of Interest.- 24. Bearer Bonds and Coupons. Bond Prices and Returns of Bonds.- 25. Oops! A Law Containing Formulas and Numerical Methods? The Calculation of the Effective Interest Rate According to the German Price Indication Ordinance.- Part III: Financial Products and Strategies-Modern Financial Mathematics.- 26. Fair Prices and Market Prices.- 27. The Short End and the Long End. Yield Curves, Spot Rates, and Forward Rates.- 28. Simple as Vanilla Ice Cream. On Standard Financial Products.- 29. Exchanges for Mutual Benefit. Swaps.- 30. The Telescope That Has Been Pushed Together. How to Calculate a Swap Rate?.- 31. Pull out Yourself of the Swamp by Your Own Hair. The Bootstrapping Method.- 32. No Risk, No Fun! Risk Indicators of Fixed-Income Securities.- 33. Sleep Well Despite Turbulent Markets? The Immunization Property of the Duration.- 34. Rising Like a Phoenix from the Ashes. New Shine for Your Depot?.- 35. The Crop of Standing Corn. Are Speculators Really Bad People?.- 36. Orange Juice and Pork Bellies. Forward Transactions.- 37. Empty Pockets and No Money. About Short Sales and No-Arbitrage Portfolios.- 38. Earning Money Without Capital and Risk. Arbitrage Transactions and Fair Prices.- 39. Fibonacci and His Rabbits. A Few Words About Technical Analysis.- Part IV: Only Rights, No Obligations-Options.- 40. A Trip Around the World: Different Types of Options.- 41. Two Triumvirates: From Arbitrage to Speculation.- 42. Nothing Is for Free: The Arbitrage Principle.- 43. How Much Do I Have to Pay for My Right? Option Pricing According to Black and Scholes.- 44. It Takes Two: Option Pricing in the Binomial Model.- 45. Safe Behind the Hedge: Hedging of Stock Positions.- 46. Wrong Calculation-Right Result: Can This Really Be? The Correct Derivation of the Risk Measure Delta.- 47. The Greeks and the Risk: About Risk Indicators for Stock Options.- 48. "In, At and Out of the Money": The Language of the Actors at the Financial Markets.- 49. Volatility Determines the Option Price-Really?.- 50. Speculating with Options: Rich by Using Leverage?.- Part V: It Is All in the Mix-Portfolio Theory.- 51. A Portfolio of Shares.- 52. Risky Investments: Everything Under Control.- 53. Negative with a Positive Impact: Risk Reduction Using Correlation.- 54. Above Your Needs and Maybe Even More? The CPPI Strategy.- 55. High Risk Pays Off!? Sometimes: On Strategies in Stock Market Games.- Part VI: The Collective Against Risks-Insurance.- 56. A Duo Taming Uncertainty: The Law of Large Numbers and the Central Limit Theorem.- 57. Do You like Classics? A German Life Insurance Concept.- 58. More Opportunities: Dynamic Hybrid Products.- 59. A Million Dollar Roulette in the Financial and Insurance Market? The Monte Carlo Method.- 60. Insurance for Millions-Billions for the Insurer.- 61. CRK: One Number for Risk and Return. Classification of Pension Products.- 62. Living with the Mortality Table.- 63. What Relates Honoré de Balzac and 30 Young Geneva Girls with Life Annuities and Life Tables?.- 64. Sometimes It Clicks and Sometimes Not. A Riester Pension Product with Index Participation.- Part VII: Theoretical Foundations-Classical and Stochastic Financial Mathematics.- Classical Financial Mathematics.- 66. Stochastic Financial Mathematics.