**Detailed guidance on the mathematics behind equity derivatives**

*Problems and Solutions in Mathematical Finance Volume II*
is an innovative reference for quantitative practitioners and
students, providing guidance through a range of mathematical
problems encountered in the finance industry. This volume focuses
solely on equity derivatives problems, beginning with basic
problems in derivatives securities before moving on to more
advanced applications, including the construction of volatility
surfaces to price exotic options. By providing a methodology for
solving theoretical and practical problems, whilst explaining the
limitations of financial models, this book helps readers to develop
the skills they need to advance their careers. The text covers a
wide range of derivatives pricing, such as European, American,
Asian, Barrier and other exotic options. Extensive appendices
provide a summary of important formulae from calculus, theory of
probability, and differential equations, for the convenience of
readers.

As Volume II of the four-volume *Problems and Solutions in
Mathematical Finance* series, this book provides clear
explanation of the mathematics behind equity derivatives, in order
to help readers gain a deeper understanding of their mechanics and
a firmer grasp of the calculations.

Mathematical finance relies on mathematical models, numerical
methods, computational algorithms and simulations to make trading,
hedging, and investment decisions. For the practitioners and
graduate students of quantitative finance, *Problems and
Solutions in Mathematical Finance Volume II* provides essential
guidance principally towards the subject of equity derivatives.