Nicholas H. Bingham Books

This updated second edition offers a thorough exploration of the probabilistic theory behind risk-neutral valuation, essential for pricing and hedging financial derivatives. It covers discrete and continuous stochastic processes, martingale theory, and includes new chapters on Credit Risk and Lévy finance, with additional resources available online.

This second edition - completely up to date with new exercises - provides a comprehensive and self-contained treatment of the probabilistic theory behind the risk-neutral valuation principle and its application to the pricing and hedging of financial derivatives.