Used price: $2.94
Buy one from zShops for: $6.75
Used price: $63.05
Buy one from zShops for: $63.05
Used price: $43.11
Buy one from zShops for: $43.11
Used price: $193.57
In this book, Lewis develops pricing formula for options under stochastic volatility models. This is mainly via the use of transform methods, that is a closed form solution is developed for the Fourier transform of the price as a function of log of the spot. The actual price is then obtained via a numerical inverse Fourier transform.
The strengths of this book are that it covers an important area that heretofore has been restricted to research papers and that it provides a large number of careful derivations and formulas.
The principal weakness is that the approach is too formula-based. The reader does not gain many conceptual insights from the author. Indeed one gains the impression that the author is technically strong but does not have a good conceptual understanding of the subject. The author does not really make a case for stochastic volatility models as opposed to other generalizations of the Black-Scholes model.
The book is restricted to vanilla options with no discussion of how using a stochastic volatility model impacts on the price of exotic options.
In conclusion, this book is not bad but it is also not great. If you are involved in studying or implementing stochastic volatility models you will certainly want to buy a copy. However the definitive book on stochastic volatility remains to be written.
A worthwhile addition to the collection of books on derivative pricing .
List price: $15.95 (that's 30% off!)
Used price: $8.99
Buy one from zShops for: $11.04
Hawking and Thorne, grasp it: Time-travel is physically IMPOSSIBLE.
The five essays in The Future of Spacetime were first presented as talks for a celebration of the 60th birthday of Kip Thorne, a leading theoretical physicist. Three of them, plus a brief introduction by physicist Richard Price, deal with relativity, and especially with the possibility and implications of "closed timelike curves" in spacetime--time travel for short. In addition, Tim Ferris writes insightfully about why it is so important for scientists and science writers to do a better job of informing people about scientific theories and discoveries, but even more importantly clueing them in about how science works. He points out that it may take 1,000 years for a concept to penetrate to the core of society. Since modern science is at best 500 years old, there's lots left to be accomplished. Alan Lightman, who is both a physicist and a novelist, beautifully describes the creative process that lies at the heart of both science and creative writing. Scientists and novelists, he argues, are simply seeking different kinds of truths.
The three physics essays are gems. Each sheds at least some light on the nature of spacetime, on the possibility (or impossibility, or improbability) of time machines and time travel, and on intimately related issues such as causality and free will. Novikov, for example, concludes that the future can influence the past, but not in such a way as to erase or change an event that has already happened. Hawking argues that time travel is happening all the time at the quantum level, but that nature would protect against an attempt to use a time machine to send a macroscopic object, such as a human being, back in time. I was particularly impressed by Kip Thorne's essay, in which he makes a series of predictions concerning what physicists and cosmologists will discover in the next thirty years. He explains the importance of the gravity-wave detectors that are now starting to come on line. They promise to let us read the gravitational signals of such primordal events as the collision of black holes and even the big bang itself. It is as fascinating to get to piggyback on how these great minds think as it is to read their conclusions.
In short, The Future of Spacetime is a bit of a salad, but an extremely delicious and satisfying one.
Robert E. Adler, author of Science Firsts: From the Creation of Science to the Science of Creation (Wiley & Sons, 2002).
Used price: $14.00
Collectible price: $39.95
Buy one from zShops for: $24.88
List price: $15.00 (that's 30% off!)
Used price: $8.33
Buy one from zShops for: $9.93
Used price: $49.00
Buy one from zShops for: $49.98
Used price: $5.99
Collectible price: $6.95