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An Elementary Introduction to Stochastic Interest Rate Modeling

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An Elementary Introduction to Stochastic Interest Rate Modeling Synopsis

This textbook is written as an accessible introduction to interest rate modeling and related derivatives, which have become increasingly important subjects of interest in financial mathematics. The models considered range from standard short rate to forward rate models and include more advanced topics such as the BGM model and an approach to its calibration. An elementary treatment of the pricing of caps and swaptions under forward measures is also provided, with a focus on explicit calculations and a step-by-step introduction of concepts.

Each chapter is accompanied with exercises and their complete solutions, making this book suitable for advanced undergraduate or beginning graduate-level students.

About This Edition

ISBN: 9789812832733
Publication date:
Author: Nicolas Privault
Publisher: World Scientific Publishing an imprint of WORLD SCIENTIFIC
Format: Hardback
Pagination: 178 pages
Series: Advanced Series on Statistical Science & Applied Probability
Genres: Stochastics

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