Mathematical Finance and Probability : A Discrete Introduction

 "This is probably the best written book on discrete-time models of mathematical finance. It is self consistent, all notions used in it are carefully defined. That is a mathematical book - by mathematicians and for mathematicians, which also means that its practical applications are restricted. The bibliography is complete. I strongly recommend that title as an introduction to mathematical finance."

― Darius Gatarek (Control and Cybernetics)

"The style of presentation will appeal to anyone who is seeking an elementary but rigorous introduction to the pricing of derivative securities. The book is written carefully and is very readable."

―Mathematical Reviews

"The book offers a self-contained elementary but rigorous and very clear introduction to the pricing of derivative instruments in discrete time. . . . For the interested reader who has not been exposed to modern probability theory before, the book provides an excellent starting point for studying the theory of derivative pricing. In particular, for a rigorous course on derivative pricing in an economics department or at a business school this introduction seems to be well-suited."

―Zentralblatt Math

"The book presents the part of mathematical finance devoted to the pricing of derivative instruments; its basic theme is the study of prices in securities markets in an uncertain environment. . . As the objective of the book is to provide a sound understanding of important issues of modern approaches to mathematical finance, several mathematical models are developed and examined in detail.  The focus is on finite-time models and the highest level of generality is frequently sacrificed for the sake of a greater insight into the underlying economic ideas.  Even when the problems are approached from the mathematical point of view and almost all results are strictly proved, the financial interpretation is always stressed. . . The style of presentation is aimed at students of financial economics, mathematics and physics and at mathematicians, physicists and economists working in financial industry."

―APPLICATIONS OF MATHEMATICS