Mathematical Finance Notes

An in-depth with full explanation and derivation Mathematical Finance Notes. Topic-wise preparation of Mathematical Finance.

Financial Derivative
Introduction
Forward
Long and Short Position
Hedging strategies using forwards
Futures
Over-the-Counter Market
Futures exchange
Swaps

Options
Introduction
Position in Options
Option payoff

European-Style Options
Introduction
European Option with Dividend
European option with dividend yield (Merton’s Formula)
Forward Options

American-Style Options
Introduction
Black-Scholes Model for American Options

Futures Options
Futures Options (Black’s Formula)
Black’s Formula – Generalized Version

Exotic Options
Introduction
Asian Option
Arithmetic Asian Option
Geometric Asian Option
Derivation: Geometric Asian Option Formula
Power Asian Option
Derivation: Power Asian Option Formula

A straight forward approach to study Financial Derivatives and Mathematical Finance..