Probability Theory in Finance : A Mathematical Guide to the Black-Scholes Formula

The use of the Black-Scholes model and formula is pervasive in financialmarkets. There are very few undergraduate textbooks available on thesubject and, until now, almost none written by mathematicians. Basedon a course given by the author, the goal of this book is to introduceadvanced undergraduates and beginning graduate students studying themathematics of finance to the Black-Scholes formula. The author uses afirst-principles approach, developing only the minimum backgroundnecessary to justify mathematical concepts and placing mathematicaldevelopments in context.