Written by two authorities in the field, this text defines for the first time this new subdiscipline of finance called financial engineering - "the application of investment technology in an effort to solve financial problems." Part one of the text is an overview of what financial engineering is all about and the knowledge base required to study this discipline. Part two deals with the conceptual tools (the underlying theory) used by financial engineers. Part three presents the products and instruments. Part four discusses strategies, and part five deals with future direction in the field. This book comprehensively and systematically explains the theories, instruments, processes and technology of this financial innovation.
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