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Did you know that falls from shopping carts are a major reason why kids visit emergency rooms? The authors explain how to keep your kid secure in the cart. Do you when your child is old enough to cross the street alone? The answer surprised me. Do you when your child is mature enough to be home alone? They offer a quiz to help you decide when your child -- and you -- are ready for that big step.
I recommend this book for anyone who watches kids between infancy and age 14. After all, keeping our kids safe and secure is just as important as letting them know they are loved.
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As far as the contents of the book are concerned, my hat goes off to the editor, Stephen Hand, for distilling such a diverse, and yet interesting range of papers from the vast array of excellent treatises available.
The book also features some interesting reports on some of the most recent activities undertaken in the WMA community. This provides the reader with a very good 'big picture' perspective into what advances are being made in what fields, and an appreciation for the vast range of people who are now interested in historical swordsmanship.
With regards to it's practicality, the book caters for many different tastes - whether you are interested in the finesse of renaissance fencing, or simply a medieval re-enactor using the trusty 'sword and shield' method. SPADA provides useful insights and a greater understanding of historical methods of fighting.
I highly recommend this book to anyone interested in gaining a greater appreciation of historical swordsmanship, and anyone who is curious to know what the swordmanship community out there is doing. I rate it as a 'must have' item, and I look forward to more SPADA releases in the future.
cheers
Matt Partridge
Secretary
Order of the White Stag
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The basis of mathematical finance is the observation by Black and Scholes that when pricing a derivative contract, for example a stock option, the randomness of the value of the underlying stock can be used to balance the randomness in value of the option in such a manner as to eliminate all randomness. A trader can thus by continually rebalancing his positions guarantee the price of an option. This price is the solution to the famous Black-Scholes equation. Thus the pricing of derivatives becomes a suprisingly rigourous branch of mathematics.
The Black-Scholes equation itself is not a particularly difficult equation -- indeed a few simple changes of variables transform it into the one-dimensional heat equation and a closed-form solution for the price of an option can be written down. The proof that it holds and the implications of the proof are however not so trivial and the book does well at explaining these.
Mathematical finance does not end with the Black-Scholes equation for two reasons. The first is that more and more complicated derivatives products are continually being innovated which require new mathematics to be invented. The second is that the equation is based on certain assumptions which while providing a reasonable first approximation are not perfect; the research of new more accurate models is therefore active and ongoing.
The author starts with the definitions of the basic financial instruments and gradually builds up to the Black-Scholes equation. He does so in a clear and detailed manner. He then goes on to discuss various generalizations to exotic options and more complicated models of stock price movements.
The principal defect of the book is that mathematical finance is not a branch of PDE theory or applied mathematics but rather a branch of probability theory. The probabilistic aspects of the subject are skimped on with only a brief coverage of binomial trees, and the concept of an equivalent martingale measure which is the fundamental concept of mathematical finance not discussed. Interest-rate options and many exotic stock options are more easily priced both practically and conceptually from a probabilitistic point of view and the PDE approach to them can become contrived.
To summarize, this book is worth buying but the reader should treat its contents with a pinch of salt and concentrate on the first two hundred pages. It should be read in parallel with another book, such as Baxter and Rennie, which concentrates on the probabilistic approach to the subject.
The book is so comprehensive such that it's going to be very difficult if not impossible to find the book with greater coverage on the subject. The level of discussion should be on the intermediate level or first-year graduate students. A good background on basic derivatives or mathematics ( algebra, differential calculus, and statistics) will proof sufficient in most of the cases to follow the mathematical detivations in the book. Working out the exercises at the end of each section will be a great pleasure to all the derivative students. Unlike many other text books which provided many difficult but interesting exercises but never the solutions elsewhere as if it's the author's intention to keep the secret with themselves forever, the Book's Instructor Manual with the solutions to all the exercises is separately available through the Publisher. However, I feel that the unexperienced readers should spend some time with a more directly accessible derivatives book such as Hull's classic ( Options, Futures, and Derivatives Securities ) before approaching this book. Once this is done, you'll realize that the Author knows the subjects very well and has his interesting ways to take you to a very heart of the concepts.
I think there are 2 limitations of this book that should be put forward. Some mathemetical concept on modern derivative pricing theory such as martingale or measure theory are only scantly touched throughout the book. Yet I have a good perception that it;s the Author's intention to follow his preferred PDE approach on derivatives pricing and to make a book more directly accessible to a practitioners i.e., derivative traders or researchers, rather than the full academic researchers. Also the treatments on interest rate through sufficiently comprehensive, is far from completion. However, the literature on interest rate derivatives is very farflung such that it should be treated in a place of it's own. I myself don't really look at this as a handicap on this book.
All in all, I can't find any good reason why this book shouldn't be on derivatives section shelf.