Mathematical Finance

Contents: an introduction to modern, i.e., stochastic, financial mathematics. The mathematical, probabilistic, and economic-financial concepts required are those introduced. Dynamic models in discrete time, specifically multi-period models, will be studied in detail. More precisely, the topics covered are:

• Derivatives and portfolio strategies
• Pricing and hedging of derivatives
• Absence of arbitrage and martingale measures
• Complete and incomplete markets
• The binomial and trinomial models
• Portfolio optimization
• American options

P.S. The notes are written in Italian