Principles of Financial Engineering (3rd Edition) – eBook

Description

Principles of Financial Engineering, 3rd Edition, (PDF) is an esteemed and essential resource for those venturing into the intricate world of financial engineering. This thoroughly updated 3rd edition shifts focus from mathematical principles to the “engineering” aspects of financial engineering, emphasizing practical application over theoretical concepts. Readers will learn how to utilize financial instruments to achieve specific objectives, rather than merely understanding the tools themselves. This edition prioritizes the engineering dimensions of derivatives and illustrates how to create these products, placing less emphasis on their pricing models and more on their functionality within the broader financial ecosystem.

Within these pages, the book reveals how to design innovative financial solutions and illustrates their collaborative workings towards tangible results. Real-world case studies effectively demonstrate these principles in action. The latest edition introduces three new chapters that expand on financial engineering applications in diverse areas, including commodity markets, hedge fund strategies, structural models of default, correlation swaps, contingent convertibles, capital structure arbitrage, and incorporating counterparty risk into derivatives pricing. Sitting at the crossroads of intuitive insight, practical application, and advanced financial mathematics, this ebook serves as a comprehensive guide to tackling challenges in taxation, risk management, regulation, and, importantly, pricing. Additionally, a solutions manual is available, providing further real-world scenarios and solutions to the prescribed exercises.

The updated third edition of Kosowski’s Principles of Financial Engineering caters perfectly to financial engineers, quantitative analysts in banking and investment sectors, and other professionals within the financial landscape. It is also highly recommended for graduate students pursuing studies in financial mathematics and engineering.

• Featuring a solutions manual that adds a layer of complexity with additional cases and solutions to the textbook exercises.
• New clarifications, additions, and illustrative examples throughout the volume emphasize how financial instruments are utilized in practice rather than merely theorizing about their operation.
• The 3rd Edition includes three new in-depth chapters covering critical topics such as financial engineering strategies within commodity markets, hedge fund applications, correlation swaps, capital structure arbitrage, contingent convertibles, structural models of default, and strategies for integrating counterparty risk into derivative pricing.

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