Elementary Introduction to Mathematical Finance: Options and other Topics Book

This new, third edition further bolsters Ross' text as an excellent introduction to mathematical finance. Plentiful with preliminary material, the book can work for self-study, given that the reader has a solid background in calculus and statistics fundamentals. It would also be helpful to understand the fundamentals of LP models and their duals, as this is an expectation made on the reader for grasping the key proof of the Arbitrage Theorem. Of course, the text can work well as an introductory course for undergraduates. The usage as a textbook on the basics of option pricing better fits the structure of the text which includes exercises at the end of each chapter without any solutions. Also, the examples, while detailed, are less numerous than the proofs, lemmas, and propositions the reader will need in order to comprehend in order to progress.