MATH 3733 - Stochastic Financial Modelling
                    
  Books recommended: 

  Baxter, Martin, Rennie, Andrew           
  Financial Calculus
  Cambridge University Press 1996

  Neftci, Salih N.
  An Introduction to the             
  Mathematics of Financial                 
  Derivatives
  Harcourt Publishers Ltd, 1996

  Capinski, M. and Zastawniak, T. 
  Mathematics for finance: an introduction to financial engineering
  London: Springer, 2003.


  Shiryaev, Albert N.  
  Essentials of Stochastic Finance:
  Facts, Models, Theory
  World Scientific Publishing Company 1999

  Wilmott, Paul, Dewyne, Jeff,       
  Howison, Sam                             
  The Mathematics of Financial       
  Derivatives
  Cambridge University Press 1995



  Additional reading:

  Shreve, S.E., 
  Stochastic calculus for finance 1, 
  The Binomial asset pricing model
  Springer, 2005

  Some textbooks in German, Chinese, French [no guarantee about links!]

  Stanley R. Pliska: "Introduction to Mathematical Finance - Discrete Time
  Models", Blackwell Publishers, 1997. A Chinese edition of this book is
  available: Economic Science Press, www.esp.com.cn, ISBN: 7-5058-2995-5.

  Einführung in die Stochastik der Finanzmärkte, Klaus Sandmann
  http://www.amazon.de/gp/product/3540679545/303-5957656-3850656?v=glance&n=29
  9956    
  
  Introduction to Stochastic Calculus Applied to Finance, D Lamberton, B Lapeyre, 
  1996, Chapman & Hall
  &
  Introduction au calcul stochastique appliqué à la finance, D Lamberton, B Lapeyre
  - 1997 - Ellipses 


The first three books are MOST useful. The fifth one is
more special and technical; it is good for studying
the notion of American options and approximation
methods, topics suitable for projects. The fourth one
is rather good for reading some sections with a
minimum of formulas. There also exists later editions of some of 
the books; all of them are equally useful.

The textbook by Shreve may be considered as advanced, 
despite its easier level of discrete time settings. 

The three last textbooks are just to help our students 
with some other native languages.