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Financial Derivatives: Pricing, Applications, and Mathematics

by Jamil Baz & George Chacko

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It is a condensed, but extremely deep , and complete exposition of the subject of theoretical finance. No financial book has the clarity of this text. Other quant books do not have such notions as ‘pricing kernel’ and economic theoretical matters. I would recommend it as a necessary piece of the ‘quant’ toolkit. Every quant should have it as a background tool as the usual quant literature is standalone and devoid of these concepts.

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"It is a condensed, but extremely deep , and complete exposition of the subject of theoretical finance. No financial book has the clarity of this text. Other quant books do not have such notions as ‘pricing kernel’ and economic theoretical matters. I would recommend it as a necessary piece of the ‘quant’ toolkit. Every quant should have it as a background tool as the usual quant literature is standalone and devoid of these concepts."
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