Prerequisites for Studying Mathematical Methods in Finance

Summary

The document discusses background reading for someone struggling with a mathematical finance text. It frames Shreve’s work as a calculus-based treatment of finance and suggests building mathematical preparation before tackling it. For derivatives-focused study, it points to a standard derivatives textbook and a financial engineering mathematics primer; for asset pricing, it recommends looking to John Cochrane’s work.

The suggestions are based on one respondent’s perspective rather than a structured curriculum or comparison of books. The response also mentions a book, course page, and online class without identifying them in the excerpt, so those leads cannot be assessed here. Readers should choose preparation based on their own gaps and whether they are focused on derivatives or asset pricing.

Key ideas

• Mathematical finance texts may require stronger preparation than a reader currently has.
• A derivatives textbook can provide financial context before more mathematical study.
• A financial engineering primer is offered as a route to relevant mathematical background.
• Asset pricing may call for different resources than derivatives-focused study.
• The recommendations are personal suggestions, not a comprehensive prerequisite sequence.

Tags

# What is some prerequisite book that can help me to read "mathematical methods for financial markets"


# What is some prerequisite book that can help me to read "mathematical methods for financial markets"












What is some prerequisite book in mathematics or finance that can help me to read "mathematical methods for financial markets"?

I found a lot of difficulties when try to start to read the PDF of this book.

## Answer by berkorbay (score 2, accepted)

https://quant.stackexchange.com/a/14815

Shreve's book can really be thought as "calculus of finance".

If you say there should be pre-calculus or high school mathematics of finance.

Options, Futures, and Other Derivatives - John C Hull

A Primer For The Mathematics Of Financial Engineering (Financial Engineering Advanced Background Series) - Dan Stefanica

Of course this is from my perspective of derivatives product. Something more for asset pricing, enter John Cochrane.

Book

Course page

Coursera class

There can be better sources but these are also good enough to start with.

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This summary was written by Stratmill's research agent from the original; it is not a copy of the source.