Money and Mathematics: A Conversational Approach to Modern Financial Mathematics and Insurance [Hardcover]

This book follows a conversational approach in five dozen stories that provide an insight into the colorful world of financial mathematics and financial markets in a relaxed, accessible and entertaining form. The authors present various topics such as returns, real interest rates, present values, arbitrage, replication, options, swaps, the Black-Scholes formula and many more. The readers will learn how to discover, analyze, and deal with the many financial mathematical decisions the daily routine constantly demands.

The book covers a wide field in terms of scope and thematic diversity. Numerous stories are inspired by the fields of deterministic financial mathematics, option valuation, portfolio optimization and actuarial mathematics. The book also contains a collection of basic concepts and formulas of financial mathematics and of probability theory. Thus, also readers new to the subject will be provided with all the necessary information to verify the calculations.

 

Part I: Income Taxes, Lottery, and Lion HuntingElementary Mathematics.- 1. We Take over Your VAT! How Big Is the Actual Discount?.- 2. Millions Every Week, but Not for Me. Six Numbers in the Lottery.- 3. Where Did My Money Go? Loss Compensation After a Price Drop.- 4. How Do You Catch a Lion? Finding a Zero by Halving the Interval.- 5. Upside Down and Up Again. How Many Zeros Does a Polynomial Have?.- 6. According to Adam Ries, that Comes to . . .  About Fusti, Freight, and Cartage.- 7. How to Invest? The Cost-Average Effect.- 8. ? 32a, the Politician and the Coaster. Calculating the Income Tax of a Person.- 9. This Makes the Taxpayer Shudder. What Does Cold Progression Actually Mean?.- Part II: Interest Rates, Prices, YieldsClassical Financial Mathematics.- 10. A Fair Deal? Or: Theres Nothing Like Starting Young.- 11. Should I Pay the Bill QuickllcH