Quantitative theoretical methods have taken the world of modern risk management by storm. However, new regulations, products, and valuation techniques provide a con- tinuous flow of challenging problems to the academic world, often triggering interesting mathematical developments. This book will develop in the student an understanding of the principles of this subject. In order to make the subject simple and interesting every topic included in this book has been self-sufficient in it and has been explained in the light of modern development in a simple and elegant style.
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