Sheldon M. Ross
Cambridge, UK: Cambridge University Press, 2003
253pp, ISBN: 978-0-521-81429-4
This primer to mathematical finance covers the basics of option pricing in an accessible way for both professional traders and undergraduates studying the fundamentals of finance. It offers explanations of arbitrage, the Black–Scholes option pricing formula, and other topics such as utility functions, optimal portfolio selections, the Capital Asset Pricing Model, and Value at Risk.