1. Introduction; 2. Fundamental concepts and techniques; 3. Modern portfolio theory; 4. Market efficiency; 5. Capital structure and dividends; 6. Valuing levered projects; 7. Option pricing in discrete time; 8. Option pricing in continuous time; 9. Real options analysis; 10. Selected option applications; 11. Hedging; 12. Agency problems and governance; Solutions to exercises; Glossary; Index.
An introduction to modern finance designed for students with strong quantitative skills.
Dominicus van der Wijst is Professor of Finance at the Department of Industrial Economics and Technology Management, Norwegian University of Science and Technology in Trondheim, where he has been teaching since 1997. He has published a book on financial structure in small business and a number of journal articles on different topics in finance.
'An excellent guide to modern finance. Professor van der Wijst
provides clear and comprehensive explanations of the major theories
in asset pricing, options, and corporate finance and the evidence
for and against each. His book is remarkable both for its range and
clarity.' Louis Ederington, Michael F. Price Chair in Finance,
University of Oklahoma
'A thorough introductory review of modern financial topics. This excellent textbook treats current financial issues by means of mathematical models in an easy-to-read but clear and comprehensive manner.' Otto Loistl, Professor Emeritus, Vienna University of Economics and Business
'I have read with great pleasure this new book by Nico van der Wijst. His style is pedagogical and yet very lively and gives a unified look at the use of quantitative methods in finance. It touches the main concepts of finance both from market and firm perspectives and provides numerous relevant examples. I will recommend this book to Masters and PhD students for its comprehensiveness and rigour.' Marida Bertocchi, University of Bergamo
'Finance must be quantitative and accessible. Under both respects [this] book is impeccable. I envy Nico's students ...' Lorenzo Peccati, Bocconi University
'Over the past few decades there is a growing trend towards the use of quantitative methods for decision making and analysis in the field of finance, as a result of the increasing complexity in the globalized markets. This book covers well selected, major areas in modern finance in a clear and comprehensive way, and succeeds in providing a very balanced presentation of elementary material related to the fundamental theories and concepts, as well as more advanced topics. I really enjoyed this unique approach of the book as it makes the underlying ideas of the finance theory and the increasing sophistication of its quantitative aspects much more accessible to a large audience of students and practitioners.' Constantin Zopounidis, Technical University of Crete and Audencia Group, School of Management