https://www.crcpress.com/Financial-Mathematics-A-Comprehensive-Treatment/Campolieti-Makarov/9781439892428

This textbook was published recently by two colleagues of mine and it is used currently for our Financial Math undergrad courses.

http://www.amazon.de/Financial-Calculus-Introduction-Derivative-Pricing/dp/0521552893/ref=sr_1_1?ie=UTF8&qid=1459773510&sr=8-1&keywords=baxter+rennie+financial+calculus

This textbook is more focused on financial derivatives and their valuation. Stochastic processes, measure theory, the famous "no arbitrage"-argument via martingales are introduced in a highly instructive manner - and it is even fun to read...

Dear Ana,

S. Stojanovic    has two  books (Email: [email protected]):

S. Stojanovic, "Computational Financial Mathematics using Mathematica", Birkhauser, Boston (2003; paperback 2013); http://www.amazon.com/dp/146126586X/.

S. Stojanovic, “Neutral and Indifference Portfolio Pricing, Hedging and Investing”, Springer, New York (2011; paperback 2014); http://www.amazon.com/dp/1489997814/.

From the book back-cover:­This book is written for quantitative finance professionals, students, educators, and mathematically inclined individual investors. It is about some of the latest developments in pricing, hedging, and investing in incomplete markets. With regard to pricing, two frameworks are fully elaborated: neutral and indifference pricing. With regard to hedging, the most conservative and relaxed hedging formulas are derived. With regard to investing, the neutral pricing methodology is also considered as a tool for connecting market asset prices with optimal positions in such assets. While there are many books on the financial mathematics of incomplete markets based on probability, and equivalent martingale measure approach to pricing, this book is based solely on the analytical aspects of stochastic control, or more precisely, portfolio optimization. Namely, relying solely on portfolio optimization, neutral and indifference pricing as well as hedging methodologies were fully developed in the context of arbitrary diffusive Markovian market models and portfolios of contracts. ­That was made possible by some recent discoveries, the most specific one being a recently found matrix inverse – the fundamental matrix of derivatives pricing and hedging. ­This approach, while very general, is very feasible for practical implementations. So, many examples are fully derived. ­The reader will get the full understanding of the relationship between neutral and indifference pricing, how to implement either one of these pricing methodologies, how to implement hedging methodologies, and how to apply all these in equity portfolio valuations and foreign exchange.

Best,

MM

Dear Anna,

You can also try "mathematical Applications for management,life and social sciences", by  Hqrshbarger Reynolds....its good for undergraduates....well simplified

Hi Anna,

i think this book can be a comprehensive guideline for your students.

computational financial mathematics using MATHEMATICA Srdjan Stojanovic, Springer, 2012. 

best

At mid-level of readable level my favorite are:

Shreve Stochastic Calculus for Finance II: Continuous-Time Models  

Bjork Arbitrage Theory in Continuous Time

Hunt, Kennedy Financial Derivatives in Theory and Practice

On the same level also nicely written:

Steele, Stochastic Calculus and Financial Applications

Klebaner Introduction to Stochastic Calculus With Applications

More introductory level:

Mikosch   Elementary Stochastic Calculus, with Finance in View

Neftci Principles of Financial Engineering

These books above is primaryly about Stochastic calculus:

For econometrics:

my favorites are Green or Maddala (easier than Green).

nice book is also Hamilton : Time Series Analysis 

or more modern Tsay time series analysis

Dear Anna,

I communicated with  S. Stojanovic, University Cincinnati, and he  recommend his  first book

He wrote:

"For undergraduate study I recommend my first book: S. Stojanovic, "Computational

Financial Mathematics using Mathematica", Birkhauser, Boston (2003; paperback 2013);http://www.amazon.com/dp/146126586X/"

One of the reviews there I find particularly incisive:

http://www.amazon.com/review/R366A8ZL68FJRU/

While I emphasize differential equations, there are many books heavy on probability.

For example,

www.amazon.com/Stochastic-Calculus-Finance-Binomial-Springer/dp/0387249680/

www.amazon.com/Stochastic-Calculus-Finance-II-Continuous-Time/dp/144192311X/"

best,MM

George Stoica thank you for your reccomendation.

Dear Anna,

for students in a second level degree in Mathematics, I mainly use

'' Introduction to Stochastic Calculus Applied to Finance ''

by Lamberton and Lapeyre

I like it because it has a precise mathematical description of some main topics, but always giving the ideas to undestand the applications. Also, it contains some parts about numerical resolution of the connected PDEs and simulation. This is quite good for my course because I need to give a concise and self-contained treatment of the topic.

Obviously, the choice of the textbook depends on a lot of aspects... it is difficult to suggest something which is good for everyone, but this is an idea...

Best regards,

Raffaella

Hi Anna

I'm an actuary student and i think this book is perfect. it has so many examples that help your students to understand actuarial mathematics very well. the name of the book is "Financial mathematics a practical guide for actuaries and other business professionals". the writers: Chris Ruckman and Joe Francies.  second edition

All the best

Dr. R S Agrawal  S Chand Publication Delhi India

For Topic : Time Value Money

Dear Anna,

Hope the following books will be useful.

1. Pandey I.M., Financial Management, 10th edition, reprinted 2006

2. Van Horne & Wachowicz. (2005). Fundamentals of Financial Management, 12th Ed. Prentice Hall.

3. Brigham and Ehrhardt. Financial Management: Theory and Practice. 13th Ed (2011). Cengage Learning 

4. Keown, A. J., Martin, D. J., Petty, J. W., & Scott, D. F. (2005). Financial Management: Principles and Applications. 10th ed. Prentice Hall.

5. Richard A Brealey, Stewart C Myers, and Franklin  Allen. (2008). Principles of Corporate Finance. 9th ed. McGraw Hill.

In addition to the above, hope the attached document will be helpful for you.

Regards,

Sewwandi.

Estimada Anna, te voy a recomendar mi libro, que uso de texto para mis estudiantes, "Curso de matemáticas Financieras" Ed Pirámide, María José Vázquez Cueto, es muy antiguo y las unidades monetarias que utiliza son las pesetas pero son perfectamente válidas todas las explicaciones, y lo interesante es que tiene muchos ejercicios.

I am looking for two kinds of book:

one with rather teoretical approach and the second one with a lot of example (like calculus).

Thank you Raffaella for your reccomandation.

The following books can be useful for students: 

1/ http://efinance.org.cn/cn/FEshuo/stochastic.pdf.

2/ Paul Wilmos, Sam Howison and Jeff Dewwynne, The Mathematics for Financial Derivatives, A Student Introduction, Cambridge Univ. Press.

Dear Tran Hung Thao,

I found very interesting The Mathematics for Financial Derivatives,

Thank you.

For mathematicians with good technical maths skills I would recommend the excellent book by Marek Musiela & Marek Rutkowski, entitled "Martingale Methods in Financial Modelling". First eddition is from 1997 and it contains the "hard stuff" with lots of original literature references. 

https://www.wallstreetmojo.com/financial-mathematics-books/