
Quantitative Finance For Dummies
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Does the complex world of quantitative finance make you quiver?You're not alone! It's a tough subject for even high-levelfinancial gurus to grasp, but Quantitative Finance ForDummies offers plain-English guidance on making sense ofapplying mathematics to investing decisions. With this completeguide, you'll gain a solid understanding of futures, options andrisk, and get up-to-speed on the most popular equations, methods,formulas and models (such as the Black-Scholes model) that areapplied in quantitative finance.
Also known as mathematical finance, quantitative finance is thefield of mathematics applied to financial markets. It's a highlytechnical discipline--but almost all investment companies andhedge funds use quantitative methods. This fun and friendly guidebreaks the subject of quantitative finance down to easilydigestible parts, making it approachable for personal investors andfinance students alike. With the help of Quantitative FinanceFor Dummies, you'll learn the mathematical skills necessary forsuccess with quantitative finance, the most up-to-date portfolioand risk management applications and everything you need to knowabout basic derivatives pricing.
* Covers the core models, formulas and methods used inquantitative finance
* Includes examples and brief exercises to help augment yourunderstanding of QF
* Provides an easy-to-follow introduction to the complex world ofquantitative finance
* Explains how QF methods are used to define the current marketvalue of a derivative security
Whether you're an aspiring quant or a top-tier personalinvestor, Quantitative Finance For Dummies is your go-toguide for coming to grips with QF/risk management.
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Content
Part 1: Getting Started with Quantitative Finance 5
CHAPTER 1: Quantitative Finance Unveiled 7
CHAPTER? 2: Understanding Probability and? Statistics 27
CHAPTER? 3: Taking a Look at Random Behaviours 45
Part 2: Tackling Financial Instruments 65
CHAPTER? 4: Sizing Up Interest Rates, Shares and? Bonds 67
CHAPTER? 5: Exploring Options 85
CHAPTER? 6: Trading Risk with Futures 99
Part 3: Investigating and Describing Market Behaviour 119
CHAPTER? 7: Reading the Market's Mood: Volatility 121
CHAPTER? 8: Analysing All the Data 139
CHAPTER? 9: Analysing Data Matrices: Principal Components 159
Part 4: Option Pricing 183
CHAPTER? 10: Examining the Binomial and Black-Scholes Pricing Models 185
CHAPTER? 11: Using the Greeks in the Black-Scholes Model 209
CHAPTER? 12: Gauging Interest-Rate Derivatives 223
Part 5: Risk and Portfolio Management 239
CHAPTER? 13: Managing Market Risk 241
CHAPTER? 14: Comprehending Portfolio Theory 257
CHAPTER? 15: Measuring Potential Losses: Value at? Risk (VaR) 275
Part 6: Market Trading and Strategy 291
CHAPTER? 16: Forecasting Markets 293
CHAPTER? 17: Fitting Models to Data . 313
CHAPTER? 18: Markets in Practice 329
Part 7: The Part of Tens 345
CHAPTER? 19: Ten Key Ideas of Quantitative Finance 347
CHAPTER? 20: Ten Ways to Ace Your Career in Quantitative Finance 355
Glossary 361
Index 369
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